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Term: Accounting -> Encumbrance
Term:

Encumbrance

Definition:

Encumbrance is 1) a right or interest in land owned by someone other than the owner of the land itself; examples include easements, leases, mortgages, and restrictive covenants; or, 2) in government accounting, an encumbrance is an anticipated expenditure, or funds restricted for anticipated expenditures, such as for outstanding purchase orders.

Related terms:

Mortgage payable

Management of an Accounting Practice
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