On July 25,20X8,the City of Pullman,which Reports on a Calendar-Year

question 34

Multiple Choice

On July 25,20X8,the city of Pullman,which reports on a calendar-year basis,ordered five police cars at an estimated cost of $200,000.On August 26,20X8,the police cars were received,and the actual cost amounted to $197,000.Pullman encumbered the appropriation for police cars in its general fund when the cars were ordered.When the police cars were received,the general fund of Pullman should:

• A)Credit Budgetary Fund Balance Assigned for Encumbrances for $197,000.
• B)Debit Encumbrances for $200,000.
• C)Debit Expenditures for $197,000.
• D)Credit Budgetary Fund Balance Assigned for Expenditures for $200,000.

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Definitions:

Government Regulations

Rules or laws established by governments to control and guide the operations of businesses and individuals with the aim of protecting public interest.

Macroeconomics

The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, including issues like economic growth, inflation, and unemployment.

Normative Statements

Statements that express value judgments or opinions about what ought to be rather than statements of fact.

Positive Theories

Positive theories attempt to describe how the world is, focusing on factual statements and cause-effect relationships without prescribing what actions should be taken.