Which Account Would Be Debited When the City of Corfu

question 116

Multiple Choice

Which account would be debited when the City of Corfu issued purchase orders for materials and supplies?

• A) Budgetary Fund Balance -- Reserve for Encumbrance.
• B) Encumbrances Control.
• C) Expenditures.
• D) Materials and supplies expense.

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Definitions:

Bank Loan

A sum of money lent by a bank to a borrower at an agreed interest rate.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.

Statement of Income

A report detailing the earnings, expenses, and net profit of a business over a fiscal period, illustrating the financial performance.

Zero Balance

A situation where an account's balance is exactly zero, indicating no funds or no outstanding amount.