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:

Reticular Formation

A network of neurons in the brainstem that is involved in regulating wakefulness, sleep, and attention.

Levels of Alertness

The varying degrees of cognitive awareness and responsiveness to the environment, ranging from high alertness to drowsiness.

Emotional Regulation

The ability to manage and respond to an emotional experience in an adaptive and appropriate manner.

Coordinating Movements

The process of using different parts of the body together smoothly and efficiently.