An Agency Makes an Internal Preliminary Request for the Purchase

question 18

Short Answer

An agency makes an internal preliminary request for the purchase of $75,000 of equipment and supplies with an anticipated cost of $10,000. The budgetary entry made by the agency would be
$\begin{array}{llcc}&& \text {Debit}& \text {Credit}\\ \text {A.}& \text { Expenditures } & \$ 10,000 \\& \text { Capital Assets} & 75,000 \\&\text { Appropriations }&&\$85,000\\ \text {B. }& \text { Allotments - Realized Resources } & \$ 85,000 \\& \text { Commitments } && \$ 85,000\\\\ \text {C. }&\text { Appropriations} &\$ 85,000\\& \text { Commitments} &&\$ 85,000\\\\ \text {D.}& \text { Appropriations } &\$ 85,000\\ &\text { Allotments } &&\$ 85,000\\\end{array}$

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Definitions:

Written Form

Refers to the requirement for certain agreements or documents to be in writing in order to be legally enforceable or valid.

Accepted

Accepted in legal and commercial contexts refers to the express or implied agreement to the terms of an offer, thereby creating a binding contract.

Instantaneous Forms

Documents or agreements that become effective immediately upon execution or fulfillment of certain conditions.

Mirror Image Rule

A principle in contract law that requires the acceptance of a contract offer to be identical to the offer for a legally binding agreement to be formed.