The General Fund Had the Following Transactions During the Month

question 28

Multiple Choice

The General Fund had the following transactions during the month of June: (1) took delivery of 10 new patrol cars that had been ordered and encumbered the previous month - the total costs were $270,000; (2) issued purchase orders totaling $25,000 for various supplies; (3) issued payroll checks in the amount of $110,000; and (4) various other short term liabilities were incurred in the amount of $1,500. Expenditures in the General Fund for the month of June would be

• A) $381,500.
• B) $136,500.
• C) $111,150.
• D) $25,000.

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Consolidation

The process of combining financial statements of a parent company with those of its subsidiaries to present as one economic entity.

Ownership Percentage

The share of ownership interest a person or entity holds in a company, typically expressed as a percentage of the outstanding shares.

Acquisition Method

The method used in accounting for assets acquired and liabilities assumed in a business combination.