Four New Computers, for Which the Cost Exceeded the City's

question 27

Multiple Choice

Four new computers, for which the cost exceeded the city's capitalization threshold, were purchased for use in the city clerk's office using General Fund resources. Which of the following entries would be required to completely record this transaction?

• A) \[\begin{array} { | l | r | r }
• \hline { \text { Generd Jemall } } & \text { Debit } & \text { Cecit } \\
• \hline \text { Gemeralfund: } & & \\
• \hline \text { Expenditures } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r }
• \hline \text { Generd Jdral } & \text { Debit } & \text { Cecit } \\
• \hline \text { Govermartal Activities: } & & \\
• \hline \text { Expenses } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline { \text { General Jeural } } & \text { Debit } & \text { Gedit } \\
• \hline \text { Gemeral wua: } & & \\
• \hline \text { Expenditures } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline \text { Govermmenal Activities: } & & \\
• \hline \text { Expenses } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline { \text { General Jeural } } & \text { Debit } & \text { Gedit } \\
• \hline \text { Gemeral wua: } & & \\
• \hline \text { Expenditures } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline \text { Govermmenal Activities: } & & \\
• \hline \text { Equipment } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline
• \end{array}\]

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Definitions:

Cost-benefit Analysis

A methodical strategy for evaluating the advantages and disadvantages of different options to identify the most effective method to realize benefits while ensuring cost savings.

Government

The organization or system through which a community or nation is managed and regulated.

Flood-control Projects

Initiatives aimed at managing or preventing the overflow of rivers, lakes, or oceans, to protect land and property.

Economic Grounds

The basis or rationale for decisions and actions based on economic factors, such as cost, benefits, and economic efficiency.