Purchase Orders and Contracts Result in What for Modified Accrual

question 59

Multiple Choice

Purchase orders and contracts result in what for modified accrual accounting and accrual accounting?

• A) Expenditure/Liability
• B) Expenditure/No entry
• C) Encumbrance/Liability
• D) Encumbrance/No entry

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Definitions:

Profit

The financial gain made by a business when revenue exceeds expenses.

Relationship

A connection, association, or involvement between two or more parties, often referring to interpersonal or business contexts.

Price Elasticity

The measure of how sensitive the demand for a product or service is to changes in its price.

Positive Numbers

Numbers that are greater than zero, illustrating values that represent quantities or measurements.