The Journal Entry to Record an Encumbrance Would Include

question 101

Multiple Choice

The journal entry to record an encumbrance would include:

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

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Definitions:

Freight

The transport of goods and cargo by land, air, or sea, often involving the payment of a fee for such service.

Pavement Assessment

The process of evaluating the condition and performance of road surfaces to determine repair and maintenance needs.

Construction Period Interest

This is the interest accrued on funds borrowed to finance the construction of a property and is typically capitalized into the cost of the asset until it is ready for its intended use.

Management Manipulation

The unethical practice of altering financial data or reports to distort a company’s financial health or performance.