The City of Upper Falls Accounts for Its Inventory Using

question 78

Multiple Choice

The City of Upper Falls accounts for its inventory using the purchases method. During the year the city bought $500,000 of supplies, for which it owed $100,000 at year-end. The city will pay for the supplies from available expendable financial resources. The entry that should be recorded in the city's general fund is

• A) Debit Expenditures $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• B) Debit Expenditures $400,000; Credit Cash $400,000.
• C) Debit Supplies inventory $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• D) Debit Supplies inventory $400,000; Credit Cash $400,000.

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Definitions:

Social Change

Transformations in the structure and functioning of a society over time, often related to cultural, economic, or political developments.

Consensus

A general agreement or harmony of opinions among members of a group, achieved through collective decision-making processes.

Retributivist

A philosophical theory of justice that believes in punishment because the offender deserves it, focusing on past crimes rather than future consequences.

Specific Deterrence

A legal principle that aims to prevent an individual from reoffending by imposing sufficiently severe consequences.