Which of the Following Depict the Typical Order of Steps

question 19

Multiple Choice

Which of the following depict the typical order of steps in the acquisition of goods and services by an activity accounted for by the General Fund?

• A) Appropriation, disbursement, encumbrance, expenditure.
• B) Appropriation, encumbrance, expenditure, disbursement
• C) Encumbrance, appropriation, expenditure, disbursement.
• D) Encumbrance, appropriation, expenditure, disbursement

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Definitions:

Account

An accounting form used to record the increases and decreases in each financial statement item.

Stockholders' Equity

The portion of the capital of a company that belongs to the shareholders; it represents the residual assets of a company after debts and liabilities have been settled.

Debit Balance

The sum remaining in an account after all debts have been subtracted from the total credits, indicating an excess of debits over credits.

Credits

Accounting entries that increase liabilities or equity or decrease assets, reflecting the sources of funding or income.