A New Computer, Which Had Been Estimated to Cost $28,000

question 41

Multiple Choice

A new computer, which had been estimated to cost $28,000, was received for an activity of a special revenue fund. The actual cost of the computer was $29,400. To record this in the special revenue fund,

• A) Capital assets should be debited for $29,400.
• B) Expenditures should be debited for $28,000.
• C) Expenditures should be debited for $29,400.
• D) There is no entry in the special revenue fund. The General Capital Assets account should be debited for $28,000.

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Definitions:

Profit Rate

The ratio of profits generated to the amount of capital or investment, indicative of the financial health and efficiency of an entity.

Demand And Supply

Fundamental economic concepts that describe the amount of a product or service available for sale (supply) and the desire of buyers for it (demand), influencing its price.

GDP

Gross Domestic Product; the total value of all goods and services produced over a specific time period within a country's borders, used as a broad measure of economic performance.

Corporate Pretax Profits

The earnings of a corporation before income taxes are deducted, reflecting the operational and financial performance of the company.