1. If invoices for items purchased total $200,000 and related purchase orders total $185,000, which of the following is correct?

A. An encumbrance is debited for $200,000

B Budgetary Fund Balance Reserve for Encumbrances is credited for $200,000

C. An expenditure is credited for $185,000

D. A liability is credited for $200,000

2. At year-end, the balance of Expenditures and Encumbrances accounts are closed to:

A. Fund Balance-Reserved

B. Expenses

C. Expenditure Control

D. Fund Balance-Unreserved