Encumbrance Accounting Is Required in the Accounting for Payroll of Governmental

question 44

True/False

Encumbrance accounting is required in the accounting for payroll of governmental funds.

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Definitions:

Investments Account

An account on the balance sheet that reports the cost of investments held by an entity, such as stocks, bonds, or real estate.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, providing a snapshot of a company's financial condition.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Common Stock

Certificates issued by a corporation to investors as proof of their ownership rights; an account representing the ownership rights of investors in a corporation; a class of stock issued by a corporation that bears no preference rights.