A Federal Agency Recorded the Receipt of Supplies at an Actual

question 1

Multiple Choice

A federal agency recorded the receipt of supplies at an actual cost of $57,000. At the time the purchase orders were issued it was estimated the supplies would cost $56,000. How would this transaction be recorded in the proprietary track accounts?

• A) It would not be recorded in the proprietary track; it would only be recorded in the budgetary track.
• B) Debit Operating Materials and Supplies $57,000 and credit Accounts Payable $57,000.
• C) Debit Unexpended Appropriations $57,000 and credit Appropriations Used $57,000.
• D) Debit Operating Materials and Supplies $57,000 and Unexpended Appropriations $57,000; credit Accounts Payable $57,000 and Appropriations Used $57,000.

---

Definitions:

Vitamins

Organic compounds that are essential for normal growth and nutrition and are required in small quantities in the diet because they cannot be synthesized by the body.

Minerals

Inorganic substances required by the body in small amounts for various functions, including bone formation and enzyme activation.

Recommended Intake

The daily amount of nutrients suggested for optimal health, as determined by health organizations.

Nutrients

Essential substances that organisms must obtain from their diet to sustain life and achieve proper growth and bodily function.