Use the Following Information to Answer Bellow Questions
Bellow

Use the following information to answer bellow Questions
bellow is the preclosing trial balance of a town's general fund at year-end:
$$\begin{array} { | l | r | r | } \hline & { \text { Dr } } & { \text { Cr } } \\\hline \text { Cash } & {\$ 8,000 } & \\\hline \text { Property taxes receivable, net } & 35,000 & \\\hline \text { Estimated revenues } & 1,000,000 & \\\hline \text { Estimated other financing sources } & 15,000 & \\\hline \text { Operating expenditures } & 1,003,000 & \\\hline \text { Accounts payable } & & 40,000 \\\hline \text { Appropriations } & & 1,005,000 \\\hline \text { Property tax revenues } & & 989,000 \\\hline \text { Bond proceeds } & & 15,000 \\\hline \text { Fund balance-unassigned } & & 12,000 \\\hline & \underline { \mathbf { \$ 2 , 0 6 1 , 0 0 0 } } & \underline { \mathbf { \$ 2 , 0 6 1 , 0 0 0 } } \\\hline\end{array}$$
-A county uses the GAAP basis to report encumbrances. At the end of 2020 there are purchase orders outstanding, for which the goods have not yet been delivered, for $40,000. Which statement below is false?

A) Expenditures for 2020 will include the $40,000 purchase orders.
B) An entry will be made at the start of 2021 to increase fund balance-unassigned by $40,000.
C) If the actual cost of the orders turns out to be $42,000, then $42,000 will be added to expenditures for 2021.
D) The expenditures connected with the purchase orders outstanding at the end of 2020 are not separated from expenditures initiated in 2021.