51.Appropriation is the legal authorization for administrators of governmental unit to incur liabilities for purposes specified and to not exceed the amount specified.
52.Expenditure is a decrease in fund financial resources (net of liabilities) other than through interfund transfers.
53.Modified accrual accounting records encumbrances when goods are ordered and accrual accounting only records a liability only when goods are received.
54.Revenues for governmental funds should be recognized when measurable and earned.
55.When purchase orders are filled and the invoice amount differs from the estimated amount, the amount recorded as an expenditure corresponds to the invoice amount.
56.When purchase orders are filled and the invoice amount differs from the estimated amount, the amount reversed from the encumbrance accountequals the invoice amount.
57.Governments may create special revenue funds whenever a tax or other revenue source is legislated to be used for a specific purpose, other than capital assets or debt service.
58.GASB requires a reconciliation between the amount shown as GAAP expenditures in the basic financial statements and the amount shown in the budgetary comparison schedule.