Expenditures Are Generally Recorded and Fund Liabilities Are Recognized

question 82

Multiple Choice

Expenditures are generally recorded and fund liabilities are recognized

• A) When goods and services are received, but only if resources are available in the fund.
• B) When goods and services are received, regardless of whether or not resources are available in the fund.
• C) When purchase orders are issued, regardless of whether or not resources are available in the fund.
• D) When invoices are paid.

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Definitions:

Bank Charges

Fees charged by banks for various services and transactions, such as account maintenance, transfers, and non-sufficient funds.

Bank Reconciliation

The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Phishing

Fake e-mails that attempt to obtain information about online banking customers.

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.