Which of the Following Requires the Use of the Encumbrance

question 24

Multiple Choice

Which of the following requires the use of the encumbrance system?

• A) Capital projects fund
• B) Debt service fund
• C) Internal service fund
• D) Enterprise fund

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Definitions:

Appropriated

The act of setting aside funds for a specific purpose or the act of taking something for one's own use, often without permission.

ADR

Alternative Dispute Resolution; a range of processes such as mediation and arbitration that resolve disputes outside of the court system.

Subcontractors

These are third-party businesses or individuals hired by a primary contractor to perform specific tasks as part of a larger project, operating under a separate contract.

Disputes

Conflicts or disagreements between parties that may involve legal action to resolve.