D is corrent because when the budget is recorded the following entry is made (assuming a surplus):
A is incorrect because per GASB Codification Section 1700, encumbrances are commitments related to unperformed (executory) contracts for goods or services. This account is debited when goods are ordered and is subsequently credited when the goods are received. This account is not included when the budget is recorded.
B is incorrect. "Fund Balance—Reserved for Encumbrances" is credited when goods are ordered and is subsequently debited when the goods are received.
C is incorrect because "Fund Balance—Reserved for Encumbrances" is credited when goods are ordered and is subsequently debited when the goods are received. This account is not included in the budget entry.
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