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Write a sentence for encumbrance
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Final answer:

Encumbrance refers to a claim or liability on an asset that can limit its use or transfer, commonly seen in financial statements and accounting practices.


Explanation:

An encumbrance is a claim or liability on an asset, often found in financial statements, that can hinder its transfer or use.

For example, if a company takes out a mortgage to purchase a building, the mortgage becomes an encumbrance on the property until it is paid off.

In accounting, encumbrances are important to reflect accurately in financial reporting.


Learn more about Understanding the concept of encumbrance in accounting here:

https://brainly.com/question/43714985


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