Question

The City of Park Ridge reported appropriations in the amount of $40,000,000 for its General Fund for the fiscal year ended December 31, 2020. During that year, expenditures amounted to $37,900,000 (related to current year purchase orders that have been filled). In addition, $1,600,000 in encumbrances had been issued this year, but not filled. The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be:

Answer 1

Answer: $37,900,000

Explanation:

Encumbrances simply means the money that is saved or reserved in order to use it for a particular thing.

The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be $37,900,00.

This is because we are informed that during that year, the expenditures of $37,900,000 which related to the current year purchase orders that have been filled.