Encumbrances Outstanding at Year-End in the General Fund Should Be

question 46

Multiple Choice

Encumbrances outstanding at year-end in the General Fund should be reported as a

• A)Fund balance designation in the General Fund.
• B)Liability in the General Fund.
• C)Reservation of fund balance in the General Fund.
• D)Liability in the governmental activities column on the government-wide statement of net assets.

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Definitions:

Variety of Tasks

A range of different activities or duties that a person or machine may be required to undertake.

Personal Liability

An individual’s personal responsibility for debts or obligations. The owners of sole proprietorships and partnerships are personally liable for the debts and obligations incurred by their businesses. If their firms go bankrupt or cannot meet debts, the owners will be personally responsible for the debts.

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.

Investment Account

A financial account that holds securities, shares, or other investments for the purpose of long-term growth or income.