When Supplies Ordered for Use in an Activity Accounted for in the General

question 106

Multiple Choice

When supplies ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order,the Encumbrance Control account is:

• A) credited for the estimated price on the purchase order.
• B) debited for the estimated price on the purchase order.
• C) debited for the actual price for the supplies received.
• D) credited for the actual price of the supplies received.

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Definitions:

Dividend

The number being divided.

Rate of Yield

A financial ratio that measures the annual return on an investment expressed as a percentage.

Commission Charges

Fees that are paid to an agent or company for facilitating a transaction, often calculated as a percentage of the transaction value.

Total Cost

The full amount of expenses incurred for producing or acquiring a product or service.