At the Time Items for Which Purchase Orders Had Previously

question 22

Essay

At the time items for which purchase orders had previously been issued are received, indicate whether each of the following accounts of the General Fund should be debited (D), credited (C), or is not affected (N).
________ 1. Encumbrances
________ 2. Encumbrances Outstanding
________ 3. Expenditures
________ 4. Vouchers payable
________ 5. Appropriations

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Definitions:

Maximize Profits

The objective of most private firms to increase their bottom line to the highest possible level given their resources and market conditions.

Natural Monopolies

A market condition where due to high infrastructure costs or significant barriers to entry, a single company can supply a product or service more efficiently than multiple competing firms.

Government Regulation

The establishment of rules and laws by government bodies that are intended to control or govern conduct and practices within various sectors.