_____ Which Statement Is Correct Concerning Encumbrances

Multiple Choice

_____ Which statement is correct concerning encumbrances?

A) They are reported in the operating statement.
B) They always lapse at year-end.
C) They usually are reappropriated in the following year's budget if outstanding at the end of a year.
D) They immediately result in a reduction of the Unreserved Fund Balance account.
E) None of the above.