On July 1, Gilbert County Bought Computer Equipment for Use

question 31

Multiple Choice

On July 1, Gilbert County bought computer equipment for use in the administrative offices of the county. The equipment has an estimated useful life of three years and salvage of $10,000. The county has a 6/30 fiscal year-end. Assuming that the county maintains its books and records in a manner that facilitates the preparation of government-wide financial statements, the $85,000 cost of this equipment would require which of the following entries?

• A) Debit Expenditures $85,000; Credit Cash $85,000.
• B) Debit Equipment $85,000; Credit Cash $85,000.
• C) Debit Expenses $85,000; Credit Cash $85,000.
• D) No entry is required.

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Definitions:

Hiring And Training Cost

Expenses associated with recruiting, hiring, and training new employees, including advertising, interviewing, and educational materials.

Labor Hours

The number of work hours spent by employees on a particular job or task over a specified period.

Inventory Holding Cost

The costs related to keeping inventory that hasn't been sold, which encompass storage fees, insurance, and value reduction over time.

Overall Market

The total demand and supply in a given market, encompassing all consumers, producers, goods, and services.