14. The following related entries were recorded in sequence in the general fund of a municipality 1. Encumbrances 15,000 Reserve for Encumbrances 15,000 2. Reserve for Encumbrances 15,000 Encumbrances 15,000 3. Expenditures 15,350 Vouchers Payable 15,350 The sequence of entries indicates that A) B) C) D) an order was placed for goods or services estimated to cost $15,000; the actual cost was $15,350 for which a liability was acknowledged upon receipt. encumbrances were anticipated but later failed to materialize and were reversed. A liability of $15,350 was incurred. the first entry was erroneous and was reversed; a liability of $15,350 was acknowledged an adverse event was foreseen and a reserve of $15,000 was created; later the reserve was cancelled and a liability for the item was acknowledged. 15. An interfund transfer should be reported in a governmental fund operating statement as other financing source (use) ) C) D) revenue or expenditure due from (to) other funds none of the above Fixed assets and noncurrent liabilities are accounted for in the records of A) proprietary funds B) both governmental and expendable funds. Q) expendable funds D) governmental funds 16. 17. A nonrecurring contribution from the General Fund to the Enterprise Fund is an example of an interfund A) reimbursement. B) loan. services provided and used. D) transfer Version 3 Page 4