The general fund of Hatteras acquired a fire truck during the fiscal year ended June 30,2009.The purchase order for the fire truck was recorded on February 15,2009.Hatteras' acquisition of the fire truck required which of the following sequences of accounting activities? I.Appropriation
II)Encumbrance
III)Expenditure

Question

Quizplus · Accepted Answer

The correct sequence is: I) Appropriation - setting aside funds for the purchase, II) Encumbrance - recording the commitment when the purchase order is issued, III) Expenditure - recognizing the actual spending when the fire truck is acquired.

The General Fund of Hatteras Acquired a Fire Truck During