The City of Upper Falls Accounts for Its Inventory Using

question 35

Multiple Choice

The City of Upper Falls accounts for its inventory using the purchases method.During the year the City bought $400,000 of supplies, for which it owed $100,000 at year-end.The City will pay for the supplies from available expendable financial resources.The appropriate entry is

• A)Debit Expenditures $400,000; Credit Cash $300,000 and Accounts Payable $100,000.
• B)Debit Expenditures $300,000; Credit Cash $300,000.
• C)Debit Supplies Inventory $400,000; Credit Cash $300,000 and Accounts Payable $100,000.
• D)Debit Supplies Inventory $300,000; Credit Cash $300,000.

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Definitions:

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A concept in organizational behavior referring to the range of authoritative requests that an employee is willing to accept without critical assessment.

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are officially issued instructions or orders that are meant to guide actions or conduct.