Jefferson County Bought a New Backhoe Using General Fund Cash

question 40

Multiple Choice

Jefferson County bought a new backhoe using General Fund cash.When the asset was acquired, what was the appropriate entry that was made in the General Fund, assuming that the entity maintains its books and records in a manner to facilitate the preparation of fund financial statements?

• A)Debit Equipment; Credit Cash.
• B)Debit Equipment; Credit Investment in fixed assets.
• C)Debit Expenditure; Credit Cash.
• D)Debit Expenditure; Credit Investment in fixed assets.

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Definitions:

Undisclosed Principal

A situation in a contract where the agent acts on behalf of a principal whose identity is not revealed to the third party.

Satisfied Judgment

A court decision that has been fully complied with, where all ordered payments or actions have been completed.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the actions of an employee or agent when performed within the scope of employment or agency.

Independent Contractor

An individual or entity contracted to perform work for— or provide services to—another entity as a non-employee.