Which description best matches the Expenditures—2026 account?

Which description best matches the Expenditures—2026 account?

• A. Expenditures for goods ordered in 2026 but received in 2027 and charged to 2026 appropriations
• B. Expenditures for goods ordered in 2027 that were received in 2028
• C. Expenditures for goods ordered in 2025 that were received in 2026
• D. Expenditures for goods ordered in 2026 and received in 2026

Answer: (A)

In budgetary accounting, expenditures are charged against a specific appropriation year when the obligation is incurred, not only when goods are received. The Expenditures—2026 account is used to track amounts charged to the 2026 appropriation. The scenario that fits this description is goods that are ordered in 2026 but aren’t received until 2027, yet the expenditure is charged to the 2026 appropriation. This shows the year of appropriation being used to record the obligation, even though delivery happens later. The other cases involve different timing that would tie the expenditure to a different appropriation year or don’t illustrate charging against the 2026 appropriation as clearly.

In budgetary accounting, expenditures are charged against a specific appropriation year when the obligation is incurred, not only when goods are received. The Expenditures—2026 account is used to track amounts charged to the 2026 appropriation. The scenario that fits this description is goods that are ordered in 2026 but aren’t received until 2027, yet the expenditure is charged to the 2026 appropriation. This shows the year of appropriation being used to record the obligation, even though delivery happens later.

The other cases involve different timing that would tie the expenditure to a different appropriation year or don’t illustrate charging against the 2026 appropriation as clearly.