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?
Encumbrances&ensp;&ensp;&ensp; Expenditures

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?
 Encumbrances&ensp;&ensp;&ensp; Expenditures

Quizplus · Accepted Answer

When goods that have already been approved for purchase are received but have not yet been paid for, the increase should be made in the Expenditures account as the goods have been physically received and are ready to be paid for. Encumbrances are used to reserve funds for future purchases and should not be increased in this scenario.

When Goods That Have Already Been Approved for Purchase Are