When a Purchase Order Is Issued Under a Capital Projects

question 31

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 Budgetary Fund Balance -- Reserve for Encumbrances.
• C) Debit Expenditures and credit Vouchers payable.
• D) Debit Expenditures and credit Budgetary Fund Balance -- Reserve for Encumbrances.

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Definitions:

Federal Agencies

Federal agencies are specialized government organizations responsible for the oversight and administration of specific functions at the national level.

Debt Ceiling

The debt ceiling is a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury, limiting how much money the federal government may borrow.

Political Tool

A method or instrument used by individuals, groups, or governments to achieve political aims or objectives.

Major Powers

Major powers refer to the most influential and capable countries in the world, often with significant military, economic, and diplomatic influence.