4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or False
4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True or False
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 3CYBK
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4.
An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.
True or False
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