Question

When goods that have already been approved for purchase are received but have not yet been paid for, which of the following local government accounts should be increased? a. Encumbrances Expenditures b. Yes Yes c. Yes No d. No No e. No Yes

Answer 1

Expenditure of the government is to be increased as a part of the payment made to the suppliers of the goods

Explanation:

An encumbrance is a part of a spending put in a safe spot for spending legally necessary or agreement. Like the spending itself, an encumbrance is a projection and not yet a reality. On the off chance that business conditions proceed as they are the point at which you set the financial limit, at that point the encumbrance will turn into a cost.

Encumbrances – an encumbrance is a booking of the apportionment for a particular thing. Most expenditures are required to be encumbered before a legitimate commitment is made to pay for the thing.