The Transportation Fleet Department for a Provincial Government Uses an Encumbrance

question 14

Multiple Choice

The transportation fleet department for a provincial government uses an encumbrance system.On October 15,20X1,the department manager issues a purchase order for $4,000 for snow tires.The tires were delivered on October 31,20X1,with an invoice for $3,800.What should be recorded on October 15,20X1?

• A)An accounts payable for $3,800
• B)An encumbrance for $3,800
• C)An accounts payable $4,000
• D)An encumbrance for $4,000