The Difference Between an Expenditure and an Encumbrance Is

question 57

Multiple Choice

The difference between an expenditure and an encumbrance is?

• A) An expenditure is the actual amount of an authorized liability and encumbrances are estimates.
• B) An encumbrance is an expended expenditure.
• C) Enterprise funds record expenditures, but do not record encumbrances.
• D) Expenditures are estimates and encumbrances are not.

Identify the principle behind bonus allocations to new or existing partners during the admission process.

Comprehend the liquidation process for partnerships, including the distribution of assets and liabilities.

Differentiate between the effects of different transactions on the net assets and total capital of a partnership.

Analyze the personal liability implications for partners in situations of capital deficiencies or partnership termination.