Goods Ordered and Originally Encumbered at $7,500 Were Received with an Invoice

question 20

Multiple Choice

Goods ordered and originally encumbered at $7,500 were received with an invoice price of $7,700. In recording this event,

• A)Encumbrances would be debited for $200.
• B)Fund Balances--Assigned would be debited for $7,700.
• C)Expenditures would be debited for $7,700.
• D)Appropriations would be debited for $200.

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Definitions:

Partners' Capital Statement

A financial document showing the changes in the equity interest of each partner in a partnership over a specific period.

Additional Investment

Funds contributed by an investor or owner to increase the capital of a business or project.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Net Income

The remaining profit of a company after all necessary subtractions, such as taxes and expenses, from its revenue.