When Equipment That Is to Be Used by an Activity

question 2

Multiple Choice

When equipment that is to be used by an activity accounted for by the General Fund of a government is received,it should be recorded in the General Fund as a(an)

• A) Capital Asset.
• B) Appropriation.
• C) Encumbrances.
• D) Expenditure.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and any other debts.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements, making it easier to compare entities internationally.

Current Liability

An obligation that a company is required to pay off within the current fiscal year or operating cycle, essentially a rephrased definition of current liabilities.