Which of the following is incorrect with respect to encumbrances? Multiple Choice Governments frequently choose not to record encumbrances for expenditures that are relatively predictable in amount such as salaries. Once goods or services are received, the encumbrance is reversed for the original amount and a liability is recorded for the amount of the invoice. The existence of an encumbrance suggests that the government has expressed an intent to use resources for a particular purpose and should not be classified as unassigned. Governments may commit resources and record encumbrances in anticipation of appropriations.