Purchase Orders for Items Ordered by the General Fund Totaled

question 38

Multiple Choice

Purchase orders for items ordered by the General Fund totaled $ 205,000. Upon receipt,invoices for these items totaled $200,000. Which of the following will take place on the date the goods are received.

• A) An encumbrance is debited for $205,000.
• B) Budgetary Fund Balance -- Reserve for Encumbrances is credited for $200,000.
• C) An expenditure is credited for $205,000.
• D) A liability is credited for $200,000.

---

Definitions:

Social Responsibility

The obligation of individuals or organizations to act in a way that benefits society at large, beyond their own interests or profit.

Serial Entrepreneurship

The practice of starting new businesses one after another, often moving from one interest or opportunity to another.

Glass Ceiling

An invisible barrier that prevents certain individuals, often women and minorities, from advancing to higher positions or levels, despite their qualifications.

Economic Independence

The state of having sufficient personal wealth to live, without needing to depend on income from some form of employment.