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) \[\begin{array} { | l | r | r | }
• \hline { \text { General Jeural } } & \text { Debit } & \text { Gedit } \\
• \hline \text { Gemeral wua: } & & \\
• \hline \text { Expenditures } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline \text { Govermmenal Activities: } & & \\
• \hline \text { Equipment } & 8,000 & \\
• \hline \text { Vouchers Payble } & & 8,000 \\
• \hline
• \end{array}\]

Grasp the significance of the time value of money in financial decision-making.

Learn the mechanisms and utility of the cash payback technique in evaluating investments.

Comprehend the methodology for calculating annual rate of return for investment projects.

Identify the roles and responsibilities of internal reporting and managerial accounting in decision-making processes.

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Definitions:

Zuckerman

Marvin Zuckerman is a psychologist best known for his theory on the sensation seeking trait, a personality trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.

Sensation Seeking Scale

A psychological assessment tool used to measure an individual's propensity for seeking novel, intense, and complex sensations and experiences.

Zuckerman

A reference to Marvin Zuckerman, a psychologist known for his research on sensation seeking, a personality trait characterized by the search for varied, novel, complex, and intense sensations and experiences.

Group Analysis

A form of psychotherapy that examines the dynamics within a group to understand and improve individual and collective psychological health.