Use the following to answer the next two questions:
The City of Park Ridge reported appropriations in the amount of $17,000,000 for its General Fund for the fiscal year ended December 31, 2014. During that year, expenditures amounted to $16,200,000 (related to current year purchase orders) and $900,000 (related to prior year purchase orders). In addition, $700,000 in encumbrances had been issued this year, but not filled. Park Ridge follows the budgetary procedure where encumbrances do not lapse.
-The amount that Park Ridge would report for expenditures (and encumbrances,if applicable)in its 2014 General Fund Statement of Revenues,Expenditures,and Changes in Fund Balances (GAAP Basis)would be:

Question

Quizplus · Accepted Answer

Expenditures are reported on the GAAP basis at the amount of the purchase order, not when paid. Encumbrances are reported on the GAAP basis.

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