When a Business Is Making Its Initial Purchase of an Item

question 13

Multiple Choice

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.

• A) straight rebuy
• B) reciprocal
• C) delayed
• D) new task
• E) modified rebuy

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Definitions:

Spendable

Refers to the amount of money that is available for use, not tied up in investments or savings.

Nonspendable

Refers to a fund balance category in governmental accounting, indicating funds that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact.

Restricted

Pertains to assets or securities that are not fully transferable until certain conditions, often regulatory, are met.

Assigned

The allocation or designation of resources, responsibilities, or tasks to a specific account, project, or individual.