A city's General Fund general ledger includes accounts called Estimated Revenues, Appropriations, and Encumbrances.
This indicates that the city:

a. Formally integrates its budget into its chart of accounts.
b. Uses a cash plus encumbrances basis of accounting.
c. Maintains its accounts on an accrual basis.
d. Erroneously reports encumbrances as expenditures.

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase