During the Previous Year, Bane County Closed Its Encumbrances Account

question 54

Multiple Choice

During the previous year, Bane County closed its Encumbrances account. At the end of the previous year there was $5,000 of outstanding purchase commitments. To restore these commitments to the accounts, which of the following entries would be required?

• A) Debit Reserve for encumbrances $5,000; Credit Encumbrances $5,000.
• B) Debit Encumbrances $5,000; Credit Reserve for encumbrances $5,000.
• C) Debit Encumbrances $5,000; Credit Fund balance $5,000
• D) Debit Fund balance $5,000; Credit Reserve for encumbrances $5,000.

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Definitions:

Learned Through Observation

The process of acquiring new behaviors or information by watching the actions or consequences of others' behaviors, also known as observational learning.

Bandura

Refers to Albert Bandura, a psychologist known for his work on social learning theory and the concept of self-efficacy.

Funding

The act of providing financial resources, typically in the form of money, or other values such as effort or time, to support a need, program, and project, usually by an organization or government.

VC

Venture Capital, a type of private equity and a form of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.