Encumbrances (used voluntarily) are not entered in the accounting records of a governmental entity's:

Question

Quizplus · Accepted Answer

Enterprise funds are used for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Encumbrances are not typically used in enterprise funds.

Encumbrances (Used Voluntarily) Are Not Entered in the Accounting Records