On July 1 Gilbert County Bought Computer Equipment for Use

question 12

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.Gilbert 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 $70,000 cost of this equipment would require which of the following entries?

• A)Debit Expenditures $70,000; Credit Cash $70,000
• B)Debit Equipment $70,000; Credit Cash $70,000
• C)Debit Expenses $70,000; Credit Cash $70,000
• D)No entry in the General Fund

---

Definitions:

Tax Liability

The total amount of tax that an individual, corporation, or other entity is obligated to pay to tax authorities, based on income, property value, or other taxable attributes.

Diminishing Marginal Utility

The decrease in satisfaction or benefit from consuming each additional unit of a good or service.

Utilitarian Argument

A principle in ethics and economics that advocates for actions that maximize happiness or well-being for the largest number of people.

Minimum Wage Law

Legislation establishing the lowest hourly rate that employers can legally pay their employees.