Choose the correct.At the end of the current year, a government reports a fund balance—assigned balance of $9,000 in connection with an encumbrance. What information is being conveyed?a. A donor has given the government $9,000 that must be used in a specified fashion.b. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. c. Encumbrances exceeded expenditures by $9,000 during the current year.d. The government spent $9,000 less than was appropriated.
Choose the correct.At the end of the current year, a government reports a fund balance—assigned balance of $9,000 in connection with an encumbrance. What information is being conveyed?a. A donor has given the government $9,000 that must be used in a specified fashion.b. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. c. Encumbrances exceeded expenditures by $9,000 during the current year.d. The government spent $9,000 less than was appropriated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Choose the correct.At the end of the current year, a government reports a fund balance—assigned balance of $9,000 in connection with an encumbrance. What information is being conveyed?
a. A donor has given the government $9,000 that must be used in a specified fashion.
b. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. c. Encumbrances exceeded expenditures by $9,000 during the current year.
d. The government spent $9,000 less than was appropriated.
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