The Difference Between an Expenditure and an Encumbrance Is

Multiple Choice

The difference between an expenditure and an encumbrance is?

A) An expenditure is the actual amount of an authorized liability and encumbrances are estimates.
B) An encumbrance is an expended expenditure.
C) Enterprise funds record expenditures, but do not record encumbrances.
D) Expenditures are estimates and encumbrances are not.