When Equipment Is Ordered by a Department of the Government

question 75

Multiple Choice

When equipment is ordered by a department of the government, the purchase order should be recorded in the General Fund as a debit to:

• A) Appropriations.
• B) Equipment.
• C) Encumbrances.
• D) Expenditures.

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Definitions:

Economic Stability

A state in which an economy experiences steady growth, low inflation, and low unemployment, leading to confidence in the financial system.

Opportunity Cost

The price paid for missing out on the alternative option when deciding.

Specialized Tools

Instruments or devices designed for specific tasks or industries, enabling more efficient and precise work in professional and technical fields.

Transaction Cost

Expenses incurred when buying or selling goods or services, beyond the price of the goods or services themselves.