On July 1, Gilbert County Bought Computer Equipment for Use

question 24

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 $85,000 cost of this equipment would require which of the following entries?

• A)Debit Expenditures $85,000; Credit Cash $85,000.
• B)Debit Equipment $85,000; Credit Cash $85,000.
• C)Debit Expenses $85,000; Credit Cash $85,000.
• D)No entry is required.

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Definitions:

Acceptance Sampling

A statistical quality control method used to determine if a batch of goods should be accepted or rejected based on sample quality.

Process Capability

The ability to meet design specifications.

Control Chart

A statistical tool used in quality control processes to monitor and control a process variable over time, identifying trends, shifts, or outliers.