The City of Upper Falls Accounts for Its Inventory Using

question 78

Multiple Choice

The City of Upper Falls accounts for its inventory using the purchases method. During the year the city bought $500,000 of supplies, for which it owed $100,000 at year-end. The city will pay for the supplies from available expendable financial resources. The entry that should be recorded in the city's general fund is

• A) Debit Expenditures $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• B) Debit Expenditures $400,000; Credit Cash $400,000.
• C) Debit Supplies inventory $500,000; Credit Cash $400,000 and Accounts payable $100,000.
• D) Debit Supplies inventory $400,000; Credit Cash $400,000.

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Definitions:

First Year

The initial period of twelve months or the introductory stage of various endeavors or experiences, often marked by rapid learning and development.

Primary Caregiver

The main person responsible for providing care and meeting the needs of a child or dependent, often a parent or guardian.

Attachment Phase

A crucial period in early child development where a young child forms emotional bonds, usually with their caregivers.

Intense Dependence

A severe reliance on another person, substance, or behavior, often to the detriment of the individual's autonomy and well-being.