General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund. Encumbrances: It is an element which is committed to pay for the goods and services in future which are ordered but not yet paid. To choose: The correct option.

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Chapter 17, Problem 17.4.8E

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Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.

Encumbrances: It is an element which is committed to pay for the goods and services in future which are ordered but not yet paid.

To choose:The correct option.

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