What Is the Correct Debit or Credit for the Following

question 69

Multiple Choice

What is the correct debit or credit for the following scenario: A contract was issued for the major part of work to be done by a private contractor in the amount of $1,200,000 for a new County court house?

• A) Debit: Budgetary Fund Balance -- Reserve for Encumbrances.
• B) Debit: Construction expenditures.
• C) Credit: Cash.
• D) Debit: Encumbrances.

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Definitions:

Conservation

The principle in cognitive development that certain properties of an object, such as volume or mass, remain the same despite changes in its form or arrangement.

Centration

A cognitive limitation in early childhood where a child focuses on one aspect of a situation or object, neglecting other relevant aspects.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Preoperational Stage

A phase in Piaget's theory of cognitive development (ages 2-7) where children begin to engage in symbolic play but lack the ability to perform operations or use logic.