66. The following related entries were recorded in sequence in the general fund of a municipality 1. Encumbrances 15,000 15,000 15,350 Reserve for Encumbrances 2. Reserve for Encumbrances 15,000 15,000 15,350 Encumbrances 3. Expenditures Vouchers Payable The sequence of entries indicates that: A) encumbrances were anticipated but later failed to materialize and were reversed. A liability of S$15,350 was incurred. first entry was erroneous and was reversed; a liability of $15,350 was C) an order was placed for goods or services estimated to cost $15,000; the actual cost D) an adverse event was foreseen and a reserve of $15,000 was created; later the acknowledged. was $15, reserve was cancelled and a liability for the item was acknowledged. 350 for which a liability was acknowledged upon receipt. 67. A nonrecurring contribution from the General Fund to the Enterprise Fund is an example of an interfund: A) loan. B) reimbursement. C) transfer. D) services provided and used. 68. Which of the following requires the use of the encumbrance system? A) Internal service fund B) Capital projects fund C) Enterprise fund D) Debt service fund 69. Most property, plant and equipment transactions of hospitals are accounted for in the: A) B) C) D) unexpended plant fund. plant replacement and expansion fund. fund for renewals and replacements. general fund