A University That Formally Integrates the Budget in the Accounting

question 23

Multiple Choice

A university that formally integrates the budget in the accounting system and uses encumbrance accounting orders some new computers that will cost approximately $20,000. To recognize this event the university should make which of the following entries?

• A) Debit Expenditures $20,000; Credit Encumbrances $20,000
• B) Debit Encumbrances $20,000; Credit Reserve for encumbrances $20,000
• C) Debit Encumbrances $20,000; Credit Accounts payable $20,000
• D) No entry required when the order is placed.

---

Definitions:

Declining Enrollment

Describes a situation where the number of individuals registering or enrolling in an institution, such as a school or program, decreases over a period of time.

Microsoft Excel 2013

A version of Microsoft's spreadsheet program that offers new features and improvements over previous versions, providing users with powerful tools for data analysis and visualization.

Topic Sentence

A sentence that expresses the main idea of the paragraph in which it occurs.

Transitional Sentence

A sentence that links paragraphs or sections of a text, guiding the reader from one idea to the next in a smooth manner.