The General Ledger of Covington Contains the Following Selected Account

question 37

Multiple Choice

The general ledger of Covington contains the following selected account balances:

Covington wants to order additional goods and services before the fiscal year end.What is the unencumbered balance of the budget that may be expended by Covington?

• A)$610,000
• B)$670,000
• C)$1,360,000
• D)$1,440,000

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Accrued Taxes Payable

Liabilities for taxes that have been incurred but not yet paid.

Current Liability

A company's obligations or debts that are due to be paid to creditors within one year.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.