The Transportation Fleet Department for a Provincial Government Uses an Encumbrance

question 14

Multiple Choice

The transportation fleet department for a provincial government uses an encumbrance system.On October 15,20X1,the department manager issues a purchase order for $4,000 for snow tires.The tires were delivered on October 31,20X1,with an invoice for $3,800.What should be recorded on October 15,20X1?

• A)An accounts payable for $3,800
• B)An encumbrance for $3,800
• C)An accounts payable $4,000
• D)An encumbrance for $4,000

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Definitions:

Gas Release

The process by which gases are expelled from geological or biological sources, including volcanic eruptions and respiration.

Hot Magma

Molten or partially molten rock beneath the Earth's surface, from which igneous rocks are formed.

Subduction

Subduction is a geological process in which one tectonic plate moves under another plate and into the mantle as the plates converge, typically occurring at oceanic trenches.

Juan de Fuca Ridge

A tectonic plate boundary located off the coast of the Pacific Northwest region of North America, characterized by seafloor spreading and volcanic activity.