When the Invoice for Materials and Supplies Ordered Is Received

question 92

Multiple Choice

When the invoice for materials and supplies ordered is received and is more than the related purchase order, this entry should be made:

• A) Debit Expenditures Control for the amount of the invoice
• B) Debit Expenditures Control for the amount of the purchase order
• C) Credit Accounts Payable for the amount of the purchase order
• D) Credit Encumbrances Control for the amount of the invoice

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Definitions:

False Representation

The act of providing untrue, misleading, or deceptive information with the intent to defraud others.

Material Fact

A fact that is significant or essential to the issue or matter at hand, which could influence a decision.

Duress

Unlawful pressure or coercion used on a person to compel them to perform an act against their will or judgment.

Breach

An act of breaking or failing to observe a law, agreement, or code of conduct, similar to a violation but often used in the context of contracts.