What Is Encumbrance In Accounting
When an encumbrance is created, an encumbrance account is debited to set aside the required funds. Then, when the actual expense is incurred and paid, the encumbrance is reversed (i.e.,…
When an encumbrance is created, an encumbrance account is debited to set aside the required funds. Then, when the actual expense is incurred and paid, the encumbrance is reversed (i.e.,…
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