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

Understand the basics of adjusting entries and their impact on financial statements.

Identify the types and purposes of adjusting entries in accounting (accrued revenues, accrued expenses, deferred revenues, prepaid expenses).

Recognize the principles of revenue recognition and expense matching as they relate to the preparation of financial statements.

Distinguish between the concepts of cash and accrual basis of accounting.

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Definitions:

Extensive Computing Applications

Software applications characterized by their comprehensive scope, significant processing power, or capability to handle large amounts of data.

Communication Technologies

Tools and platforms that enable the electronic exchange of information (text, audio, video, etc.) across distances, such as email, social networks, and video conferencing.

External Computer Networks

Networks that extend or connect with systems outside a given organization, enabling data exchange between different entities.

The CPU

Stands for Central Processing Unit, the primary component of a computer that performs most of the processing inside the computer.