The journal entry to re-establish an encumbrance from the prior year would include: Multiple Choice A debit to Budgetary Fund Balance – Reserve for Encumbrances. A credit to Appropriations Control. A credit to Budgetary Encumbrances. A debit to Encumbrances Control..

The journal entry to re-establish an encumbrance from the prior year would include: Multiple Choice A debit to Budgetary Fund Balance – Reserve for Encumbrances. A credit to Appropriations Control. A credit to Budgetary Encumbrances. A debit to Encumbrances Control..

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 8E: a. Describe the entries that have been posted to the following accounts after the Change Fund was...

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Concept explainers

Budgeted Income Statement

Accounting is the process of recording business-related financial transactions. The process of accounting involves summarizing and analyzing the transactions. The financial statements which are prepared in accounting contain a summary of the various transactions that took place within a certain accounting period. Book-keeping or accounting is one of the most important activities of any business.

Question

The journal entry to re-establish an encumbrance from the prior year would include:

Multiple Choice

A debit to Budgetary Fund Balance – Reserve for Encumbrances.
A credit to Appropriations Control.
A credit to Budgetary Encumbrances.
A debit to Encumbrances Control..

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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