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) \[\begin{array} { | c | c | }
• \hline \text { DR Estimated commitments } & 20,000 \\
• \hline \text { CR Accounts payable } & 20,000 \\
• \hline
• \end{array}\]

---

Definitions:

Discrimination Lawsuits

Legal actions taken against individuals or entities accused of unfair treatment based on race, gender, age, disability, or other protected statuses.

Unjust Dismissal

Termination of employment that is unfair, without proper cause, or in violation of legal guidelines.

Job Success

Achieving or exceeding the desired outcomes or objectives associated with performing a particular job role.

Behavioral Observation Scales (BOS)

A method used in performance management that involves rating employee behaviors or actions as part of the evaluation process.