An Enterprise Fund of Grist Was Billed $10,000 for Using

question 16

Multiple Choice

An enterprise fund of Grist was billed $10,000 for using the services of an internal service fund's data processing center.What account should Grist's enterprise fund debit to record this billing?

• A)Due to Internal Service Fund
• B)Expenditures
• C)Transfer Out to Internal Service Fund
• D)General Operating Expenses

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Definitions:

Vertical Price Fixing

An agreement among participants on different levels of the same supply chain to control prices passed on to consumers.

Tying Arrangement

A business agreement in which the sale of one product or service is linked to the purchase of an additional product or service.

Exclusive Dealing

A sales strategy where a seller requires a buyer to purchase only its products and not those of competitors.

Vertical Price Fixing

An illegal practice where parties at different levels of the same supply chain (such as manufacturers and retailers) agree to set and maintain prices at a certain level.