To Close Encumbrances at the End of the Year Which

question 30

Multiple Choice

To close Encumbrances at the end of the year which of the following entries should be made?

• A) Debit Encumbrances; Credit Fund balance.
• B) Debit Reserve for encumbrances; Credit Encumbrances.
• C) Debit Fund balance; Credit Encumbrances.
• D) No closing entry needed.

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Definitions:

Charitable Goals

Objectives aimed at providing aid or support to those in need, often pursued by non-profit organizations or philanthropic initiatives.

For-Profit Organization

A business or other organization whose primary goal is to generate income for its owners or shareholders.

Dambisa Moyo

An international economist and author known for her works analyzing macroeconomic issues and global affairs.

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