The Khoo Music Society, a Not-For-Profit Organization, Is Purchasing Musical

question 3

Multiple Choice

The Khoo Music Society, a not-for-profit organization, is purchasing musical instruments to donate to some local schools. Khoo ordered the instruments on August 1, 20X1. Khoo uses an encumbrance system. What journal entry should Khoo make at August 1, 20X1?

• A) \[\begin{array} { | c | c | }
• \hline \text { DR Encumbrances-instruments } & 20,000 \\
• \hline \text { CR Estimated commitments } & 20,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | c | }
• \hline \text { DR Encumbrances-instruments } & 20,000 \\
• \hline \text { CR Accounts payable } & 20,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | c | }
• \hline \text { DR Estimated commitments } & 20,000 \\
• \hline \text { CR Encumbrances-instruments } & 20,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { DR Estimated commitments } & 20,000 \\
• \hline \text { CR Accounts payable } & 20,000 \\
• \hline
• \end{array}\]

Understand the strategies for navigating and influencing political environments within organizations.

Discern the negative consequences of powerlessness in organizations.

Identify the role and impact of informal structures and efforts in achieving organizational goals.

Understand the cognitive appraisal approach to stress and how perceptions influence stress levels.

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Definitions:

Patent

A legal right granted to an inventor or assignee to exclusively make, use, or sell an invention for a certain number of years.

Fixed Cost

Expenses that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Patent

A legal document granted by the government, giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Demand Function

A mathematical function that describes the quantity of a good that consumers are willing and able to purchase at various prices.