In Which of the Following Cases Would the Reserve for Encumbrances

question 24

Multiple Choice

In which of the following cases would the reserve for encumbrances account be decreased?

• A) Budget revisions are made, decreasing appropriations
• B) Payment is made for goods received
• C) Goods, related to purchase orders, are received
• D) Purchase orders are issued

---

Definitions:

Joint Costs Method

An accounting approach used to allocate costs among multiple products that are produced simultaneously from the same process or materials.

Physical Units Method

The Physical Units Method is a technique used in process costing that allocates costs based on the number of units produced, disregarding the varying production stages or levels of completion.

Dairy Production

The process of managing and producing milk and milk-based products, often from cows or goats.

Split-Off Point

The stage in a production process where joint products can be recognized as separate products, capable of being sold independently.