At the beginning of its fiscal year,the Town of Harmon estimates that its revenues for street maintenance activities are $100,000,and it appropriates $90,000 for street maintenance supplies.It currently has outstanding encumbrances for street maintenance supplies of $40,000 and has incurred expenditures for street maintenance supplies of $30,000.How much does the Town of Harmon currently have available to spend for street maintenance supplies?
A)$20,000
B)$30,000
C)$40,000
D)$50,000
E)$60,000

Question

Quizplus · Accepted Answer

The Town of Harmon starts with an appropriation of $90,000 for street maintenance supplies. From this amount, it needs to account for both the outstanding encumbrances ($40,000) and the expenditures already incurred ($30,000). Subtracting both these amounts from the appropriation gives: $90,000 - $40,000 - $30,000 = $20,000 available to spend.

At the Beginning of Its Fiscal Year,the Town of Harmon