Question

A Budgetary Fund Balance—Reserved for Encumbrances (current year) in excess of a balance of Encumbrances Control indicates:

a. An excess of Vouchers Payable over
Encumbrances Control.
b. An excess of purchase orders over invoices
received.
c. An excess of Appropriations Control over
Encumbrances Control.
d. A recording error.

Answer 1

The excess of Budgetary Fund Balance—Reserved for Encumbrances (current year) over the balance of Encumbrances Control indicates an excess of Appropriations Control over Encumbrances Control.

Step-by-step explanation:

The excess of Budgetary Fund Balance—Reserved for Encumbrances (current year) over the balance of Encumbrances Control indicates an excess of Appropriations Control over Encumbrances Control.

Encumbrances are commitments to spend funds for future expenses, such as purchase orders for goods or services.

If Budgetary Fund Balance—Reserved for Encumbrances (current year) is greater than the balance of Encumbrances Control, it means that there are still funds reserved for encumbrances that have not been spent, but the appropriations for those encumbrances have been exhausted.