Q7:

An encumbrance is a commitment. It represents resources which are now committed for a specified use.

a.

True

b.

False

Q8:

An allotment system provides a means of control by which

a.

Governmental unit divide its annual appropriations into smaller time periods.

b.

Governmental unit divide its annual appropriations into smaller departments.

c.

Governmental unit divide its annual revenues into smaller stream of revenue.

d.

Governmental unit divide its annual appropriations into smaller objects of expenditure.