The City of Upper Falls Accounts for Its Inventory Using

question 10

Multiple Choice

The City of Upper Falls accounts for its inventory using the purchases method.During the year the City bought $500,000 of supplies, for which it owed $100,000 at year-end.The City will pay for the supplies from available expendable financial resources.The entry that should be recorded in the City's General Fund is

• A)Debit Expenditures $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• B)Debit Expenditures $400,000; Credit Cash $400,000.
• C)Debit Supplies inventory $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• D)Debit Supplies inventory $400,000; Credit Cash $400,000.

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Definitions:

Caste-Like Systems

Social stratification systems similar to the caste system, where the social hierarchy is rigid and individuals' positions are fixed at birth.

Agricultural Societies

Those in which plows and animal power are used to substantially increase food supply and dependability as compared with horticultural and pastoral societies. Agricultural societies first emerged about 5000 years ago. Average settlement size and permanence, the division of labor, productivity, and inequality are higher in agricultural societies than in horticultural and pastoral societies.

Class Analysis

The study and examination of social classes and their relationships, often focusing on issues of inequality and power.

Property Owners

Individuals or entities that hold legal title to land, buildings, or other assets.