True or false: At 2019 year-end, a government has $25,000 of outstanding encumbrances. The 2019 Budgetary Comparison Scheduled will include the $25,000 whether or not the encumbrances lapse at year-end.

True.

Explanation:

The 2019 Budgetary Comparison Schedule will include the $25,000 whether or not the encumbrances lapse at the year-end, either as outstanding encumbrances or settled encumbrances.  These $25,000 encumbrances are budget reservations of appropriations so that they can be used to settle specified expenditures in the future.  The purpose of making these reservations is to signal that the expenditures have been earmarked so that their cash allocations are not used for other purposes.

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(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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