Encumbrance accounting is typically not used for Permanent Funds.
Answer the following statement true (T) or false (F)
True
Permanent and debt service funds do not use encumbrances. The general , special revenue and capital projects funds use encumbrances.
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When an investor uses the equity method to account for investments in common stock, the investment account will be increased when the investor recognizes
a. a proportionate share of the net income of the investee. b. a cash dividend received from the investee. c. periodic amortization of an intangible arising from contractual rights acquired in the purchase. d. depreciation related to the excess of market value over book value of the investee's depreciable assets at the date of purchase by the investor.
Discuss the issue of whether or not executive compensation is too high and how the major provisions of the Dodd–Frank Act affect the issue.
What will be an ideal response?
Cash flows from investing activities do not include:
A. The sale of land. B. The purchase of equipment. C. Borrowing. D. The purchase of a building.
Based on averages, which of the following businesses is likely to have the highest costs as a percent of sales?
A. manufacturers' agent for textile producers B. general merchandise wholesaler based in the U.S. C. export agent for American-made furniture D. broker for industrial machinery E. import agent for specialty items from China