When a Purchase Order Is Issued Under a Capital Projects

question 125

Multiple Choice

When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded?

• A) Debit Encumbrances Control and credit Vouchers payable
• B) Debit Encumbrances Control and credit Reserve for encumbrances
• C) Debit Expenditures and credit Vouchers payable
• D) Debit Expenditures and credit Reserve for encumbrances

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Definitions:

Classical

pertains to established theories and practices that have been accepted over time, particularly in arts, literature, or within scientific and philosophical fields.

Contextual Variables

External and internal factors that can influence the performance and behavior of individuals or organizations, including economic, social, and technological factors.

Structural Variables

Aspects related to the organization's structure, such as hierarchy, departmentalization, and division of labor, that influence its operations.

Contextual Variables

Factors that influence the performance and behavior of individuals or organizations, but exist outside of their direct control.