Ask Question
BusinessBusiness
18 September, 02:57

A county has $3,650,000 of outstanding encumbrances related to unassigned resources at year-end, December 31, 2019. It expects to accept delivery on all orders in 2020. How should the county handle the outstanding encumbrances in its General Fund balance sheet at December 31, 2019?

+4
Answers (1)
  1. 18 September, 04:44
    0
    A. It should close the open encumbrances and show them as part of assigned fund balance

    Explanation:

    Encumbrances includes purchase order, payroll commitments, legal penalty and so on that is chargeable to an account. So, in this case, the county is expecting the purchase order made in 2019 to come in 2020. In filling the balance sheet, for year end 2019, the open outstanding encumbrances should be close and shown in the balance sheet as assigned fund balance. This is because governments are not allowed to reports amount ls encumbered, but rather should be classified as either committed or assigned.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A county has $3,650,000 of outstanding encumbrances related to unassigned resources at year-end, December 31, 2019. It expects to accept ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A firm is evaluating a capital budgeting project that generates cash inflows equal to $50 per year for the next five years. If the project's traditional payback period (PB) is 3.6 years, what is its initial cost? a. $180 b. $200 c. $140 d. $120 e.
Answers (1)
One of the flaws of GDP is that it Select one: a. includes only transactions that take place in formal businesses. b. ignores transactions that do not take place in organized markets. c. includes measures of the underground economy. d.
Answers (1)
On August 2, 2019, Wendy purchased a new office building for $3,800,000. On October 1, 2019, she began to rent out office space in the building. On July 15, 2023, Wendy sold the office building. a.
Answers (1)
Natalie promises Brett that she will pay him $1,000 for painting her house. Brett then agrees and purchases the painting materials, costing him $300. The following day Brett arrives at Natalie's house to paint but she had hired Kobe instead.
Answers (1)
The movement and storage of materials into a firm refers to:
Answers (1)
New Questions in Business
On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accumulated depreciation up-to-date, the delivery van had accumulated depreciation of $18,000.
Answers (1)
Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date.
Answers (1)
Altman Corporation is considering investing $75,000 in a new piece of machinery that will generate net annual cash flows of $25,000 each year for the next 5 years. The machine has a salvage value of $8,000 at the end of its 5 year useful life.
No Answers
External users of financial information: Multiple Choice Are those individuals involved in managing and operating the company. Are not directly involved in operating the company. Make operating decisions for a company.
Answers (2)
Bram buys a bulldozer from construction equipment corporation, which he leases to earth movers, inc. in this situation, the lessee is
Answers (1)
Home » Business » A county has $3,650,000 of outstanding encumbrances related to unassigned resources at year-end, December 31, 2019. It expects to accept delivery on all orders in 2020.
Sign Up Forgot Password?