A University That Formally Integrates the Budget in the Accounting

question 23

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.

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Definitions:

Thalamus

a mass of gray matter in the dorsal part of the diencephalon of the brain, functioning as a central relay station for sensory information.

Ventral Surface

refers to the front or anterior surface of any body part or organ.

Olfactory Bulbs

Structures located in the forebrain involved in the sense of smell, receiving sensory input from the olfactory nerves.

Anterior

Situated at the front or towards the front of the body.