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 donor has given the government $9,000 that must be used in a specified fashion. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. Encumbrances exceeded expenditures by $9,000 during the current year. The government spent $9,000 less than was appropriated.
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 donor has given the government $9,000 that must be used in a specified fashion. The government has made $9,000 in commitments in one year that will be honored in the subsequent year. Encumbrances exceeded expenditures by $9,000 during the current year. The government spent $9,000 less than was appropriated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 donor has given the government $9,000 that must be used in a specified fashion.
- The government has made $9,000 in commitments in one year that will be honored in the subsequent year.
- Encumbrances exceeded expenditures by $9,000 during the current year.
- The government spent $9,000 less than was appropriated.
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