How does the use of encumbrance procedures improve budgetary control over expenditures?
What will be an ideal response?
The use of encumbrance procedures earmarks a portion of the remaining budgetary appropriation when a purchase order is issued or a contract for services is signed, thus alerting departmental officials and finance department personnel that a portion of the authorization is no longer available. Without the encumbrance, it is always possible that another purchase order or contract will be issued that could exceed the remaining available appropriation for that line item in a particular department.
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Direct materials and direct labor go directly into ____________________
Fill in the blank(s) with correct word
The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict
A) intensive B) selective C) exclusive D) horizontal E) vertical
Spoiled units are
a. units that cannot be economically reworked to bring them up to standard. b. units that can be economically reworked to bring them up to standard. c. the same as defective units. d. considered abnormal losses.
The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense
The company's management estimates that 5% of net credit sales will be uncollectible for the year 2017. Net credit sales for the year amounted to $280,000. What is the amount of Bad Debts Expense reported on the income statement for 2017? A) $14,000 B) $19,000 C) $7,000 D) $9,000