Choice "C" is correct. Appropriations is a budgetary account. This account represents the governmental units approved spending (in this case $745,000). Expenditures represent the total amount incurred, whether paid in cash or accrued as vouchers payable, and serve to reduce available appropriations. Vouchers payable, alone, are excluded from this computation of available appropriations since the amount accrued is already included in expenditures. Encumbrances are either commitments or assignments of the fund balance for purchase orders and represent a reduction of available appropriations.
| |
|---|
| Appropriations | $ 745,000 |
| Less: Expenditures | 298,000 |
| Less: Encumbrances | 37,250 |
| Remaining available appropriations | $ 409,750 |
Choices "a", "b", and "d" are incorrect per explanation above.
