The Journal Entry to Record the Re-Establishment of Encumbrances That

question 78

Multiple Choice

The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include:

• A) A credit to Budgetary Fund Balance - Reserve for Encumbrances
• B) A debit to Budgetary Fund Balance - Reserve for Encumbrances
• C) A credit to Encumbrance Control
• D) A and B would both be included in the journal entry

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Definitions:

Partnership Agreement

A formal contract between two or more parties who agree to manage and operate a business together, outlining the responsibilities, profit share, and rules for the partnership.

Personal Assets

Assets owned by an individual, including both tangible items like real estate and vehicles, and intangible items like stocks and bonds.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their businesses.

Unlimited Personal Liability

A legal obligation where an individual's personal assets can be used to satisfy the debts and liabilities of the business.