Carolina City Places an Order for a Specific Item of Equipment

question 30

Multiple Choice

Carolina City places an order for a specific item of equipment and encumbers $6,000 for that item.The equipment arrives with an invoice for $5,700.Which of the following entries should the city make upon receipt of the equipment?

• A)A debit to expenditures for $5,700, a debit to accounts payable for $300, and a credit to encumbrances for $6,000.
• B)A debit to expenditures for $5,700, a debit to reserve for encumbrances for $6,000, a credit to accounts payable for $5,700, and a credit to encumbrances for $6,000.
• C)A debit to expenditures for $5,700, a debit to reserve for encumbrances for $300, and a credit to accounts payable for $6,000.
• D)A debit to expenditures for $300, a debit to reserve for encumbrances for $5,700, and a credit to encumbrances for $6,000.

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Definitions:

Ejaculate

The release of semen from the body during orgasm in males.

STI

Sexually Transmitted Infection, an infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.

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Biopsychosocial Approach

An integrated perspective that incorporates biological, psychological, and social-cultural levels of analysis to understand health and illness.