In a Capital Projects Fund, When a Contract Is Signed

question 27

Multiple Choice

In a Capital Projects Fund, when a contract is signed with a contractor to construct a fixed asset, the amount of the contract is:

• A)​debited to Expenditures.
• B)​credited to Contracts Payable.
• C)​debited to Encumbrances.
• D)​credited to Other Financing Sources.

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Definitions:

ADA

Stands for Americans with Disabilities Act, a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.

FMLA

The Family and Medical Leave Act, a U.S. federal law guaranteeing certain employees up to 12 weeks of unpaid leave annually without the risk of job loss.

IRCA

The Immigration Reform and Control Act of 1986, U.S. legislation that makes it illegal to hire undocumented immigrants knowingly and mandates employment verification.

ACA

The Affordable Care Act, a comprehensive health care reform law enacted in March 2010 in the United States.