Capital Projects Funds Generally Do Not Use the Encumbrances Control

question 28

True/False

Capital projects funds generally do not use the Encumbrances control account.

---

Definitions:

Present Value

The value in today's dollars of a future sum of money, adjusted for interest or inflation.

Share Of Stock

Represents ownership in a corporation, giving the holder a claim on part of the company’s assets and earnings.

Discount Rate

The financial rate used to convert future cash flows into their present value during a discounted cash flow analysis.

Cash Flows

The overall volume of cash inflows and outflows within a firm, influencing its liquid assets.