Question

True or False

1. Expenses represent the costs to purchase goods or services, whereas expenditures represent the costs of goods or services consumed or expired during the period.

2. Other financing sources increase fund balance in the same manner as revenues.

3. Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances.

4. An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

5. At the end of the fiscal year Encumbrances is closed to Budgetary Fund Balance with a credit.

Answer 1

1. False, expenditure represent the costs to purchase goods or services, whereas expenses represent the costs of goods or services consumed or expired during the period.

2. True, Other financing sources increase fund balance in the same manner as revenues.

3. True,

4. true, An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.

5. True, At the end of the fiscal year Encumbrances is closed to Budgetary Fund Balance with a credit.

Please give a like for the correct answer . Thanks