1. A county includes outstanding encumbrances as expenditures (legal basis) when comparing expenditures to budgeted appropriations. To arrive at GAAP basis expenditures, the legal basis expenditures must be adjusted by:

A. Adding encumbrances outstanding at the beginning of the year and subtracting encumbrances outstanding at the end of the year.

B. Subtracting encumbrances outstanding at the beginning of the year and adding encumbrances outstanding at the end of the year.

C. Subtracting encumbrances outstanding at the beginning of the year and at the end of the year.

D. Adding encumbrances outstanding at the beginning of the year and at the end of the year.