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, 2015. During that year, expenditures amounted to $16,200,000 (related to current year purchase orders). In addition, $600,000 in encumbrances had been issued this year, but not filled.
-The amount that Park Ridge would report for expenditures (and encumbrances,if applicable)in its 2015 General Fund Statement of Revenues,Expenditures,and Changes in Fund Balances (GAAP Basis)would be:

Question

Quizplus · Accepted Answer

Under GAAP, only actual expenditures are reported in the financial statements. Encumbrances are not reported as expenditures until the goods or services are received. Therefore, the reported expenditures would be $16,200,000.

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