The "Reserve for Encumbrances-Prior Year" Account Represents Amounts Recorded by a Governmental

Multiple Choice

The "reserve for encumbrances-prior year" account represents amounts recorded by a governmental unit for:

A) anticipated expenditures in the next year.
B) expenditures for which purchase orders were made in the prior year but disbursement will be in the current year.
C) excess expenditures in the prior year that will be offset against the current-year budgeted amounts.
D) unanticipated expenditures of the prior year that become evident in the current year.