At what point would the General Fund account "Budgetary Fund Balance -- Reserve for Encumbrances" be debited?

Question

Quizplus · Accepted Answer

The General Fund account "Budgetary Fund Balance -- Reserve for Encumbrances" is debited when an authorized liability is incurred, which occurs when the government receives the item. This means that the goods or services have been delivered, and the government has an obligation to pay for them. The reserve for encumbrances account is used to set aside funds to ensure that the government has enough resources to cover these obligations when payment becomes due. Therefore, option (B) is the correct answer. Option (A) is incorrect because ordering an item does not create a liability, and option (C) is incorrect because the payment to the vendor comes after the liability has been incurred. Option (D) is partially correct but does not provide a complete answer as it depends on the authorized appropriations.

At What Point Would the General Fund Account "Budgetary Fund