A University That Formally Integrates the Budget in the Accounting

question 8

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.

Comprehend the factors affecting elasticity (e.g., availability of substitutes, necessity versus luxury) and their economic implications.

Grasp the concepts of income elasticity of demand and cross-price elasticity of demand and how they relate to goods being normal, inferior, substitutes, or complements.

Analyze the effects of elasticity on total revenue and expenditure.

Understand the concept of price elasticity of supply and its determinants.

---

Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets.

Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, out of its profits.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.