Choice "B" is correct. Encumbrances are commitments or assignments of fund balance representing the amount of unperformed contracts for goods or services. Encumbrances at year-end do not constitute expenditures or liabilities. Therefore, at year-end encumbrances are reclassified as a commitment of assignment of fund balance that is not appropriable for expenditure.Choice "a" is incorrect. Encumbrances are not liabilities. They represent commitments for unperformed contracts for goods or services.Choice "c" is incorrect. Encumbrances are not debts. They represent commitments for unperformed contracts for goods or services. Also, account groups were eliminated with the implementation of GASB 34.Choice "d" is incorrect. Encumbrances do not constrain fund balance to the level of restrictions; rather, at year-end encumbrances grouped with either commitments or assignments of fund balance and, if material, are disclosed in the aggregate. Restricted funds may be encumbered for their restricted purpose, but an encumbrance would not result in a restriction.