The Difference Between an Expenditure and an Encumbrance Is

question 51

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) There is no difference between the two.
• D) Expenditures are estimates and encumbrances are not.

Determine and apply criteria for capitalizing versus not capitalizing works of art or historical treasures.

Prepare journal entries for government-wide and fund financial statements for specific transactions.

Understand and apply the methods of consolidating financial information subsequent to the acquisition date.

Understand the classification of assets in accounting.