When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order, the Encumbrance Control account is:

Question

Quizplus · Accepted Answer

The Encumbrance Control account is credited for the estimated price on the purchase order when the supplies are received, regardless of the actual price. This reflects the release of the encumbrance initially recorded at the estimated price.

When Supplies Ordered for Use in an Activity Accounted for in the General