HW1 Q3-7 - 3-7.Definitions of these terms are given in the Glossary of the text Below are briefer statements:a.Expendituresand Encumbrancesare both

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Unformatted text preview: 3-7.Definitions of these terms are given in the Glossary of the text. Below are briefer statements:a.Expendituresand Encumbrancesare both charges against appropriations. An encumbranceis a charge for an estimated amount at the time goods are ordered; an expenditureis a charge for an actual amount at the time the goods are received (accrual and modified accrual basis) or paid (cash basis). Encumbrance accounting is used only in those funds where it is needed to achieve budgetary control over expenditures. b.Revenuesare increases in net assets of the government as a whole or of a fund other than from interfund transfers or debt issue proceeds, recognized at the time the increase is earned (accrual basis), available for use (modified accrual basis) or received in cash (cash basis). Estimated revenuesare amounts expected to be available for use or received under enabling legislation during a budget period....
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This note was uploaded on 08/01/2011 for the course ACCT 434 taught by Professor Mcclellan during the Spring '11 term at National.

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