When a Purchase Order Is Issued Under a Capital Projects

question 68

Multiple Choice

When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded?

• A) Debit Encumbrances Control and credit Budgetary Fund Balance -- Reserve for Encumbrances.
• B) Debit Expenditures and credit Vouchers payable.
• C) Debit Encumbrances Control and credit Vouchers payable.
• D) Debit Expenditures and credit Budgetary Fund Balance -- Reserve for Encumbrances.

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