A Capital Projects Fund Awards the Construction of a Building

question 14

Multiple Choice

A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000.What entry is prepared by the Capital Projects Fund?

• A)Debit Expenditures $1,000,000,Credit Liability $1,000,000
• B)Debit Building $1,000,000,Credit Expenditures $1,000,000
• C)Debit Other Financing Uses $1,000,000,Credit Expenditures $1,000,000
• D)Debit Encumbrances $1,000,000,Credit Reserve for Encumbrances $1,000,000

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Definitions:

Esteem Needs

According to Maslow's hierarchy, these are the fourth level of human needs, focusing on respect, self-esteem, and recognition from others.

Physiological Needs

The basic physical requirements necessary for human survival, such as air, water, food, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Physiological Needs

Basic, essential human requirements for survival, such as food, water, shelter, and sleep, according to Maslow's hierarchy of needs.