The Following Related Entries Were Recorded in Sequence in the General

question 5

Multiple Choice

The following related entries were recorded in sequence in the general fund of a municipality: The sequence of entries indicates that:

• A)an adverse event was foreseen and a reserve of $15,000 was created; later the reserve was cancelled and a liability for the item was acknowledged.
• B)an order was placed for goods or services estimated to cost $15,000; the actual cost was $15,350 for which a liability was acknowledged upon receipt.
• C)encumbrances were anticipated but later failed to materialize and were reversed.A liability of $15,350 was incurred.
• D)the first entry was erroneous and was reversed; a liability of $15,350 was acknowledged.

Know how to classify different accounts into their correct categories (Assets, Liabilities, Stockholders' Equity, Revenues, Expenses).

Grasp the concept of horizontal analysis and its application in comparing financial statements.

Understand the effects of transaction corrections on account balances.

Distinguish between the normal balance sides of different accounts and correctly classify them as debit or credit side balances.

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Definitions:

Messaging Leanness

The degree to which a message is straightforward and devoid of unnecessary information or embellishment.

Conversational Tone

The manner of expression in common business communication; it employs straightforward language that is professional yet not overly formal or excessively casual.

Response Time

The duration it takes for a system or individual to react to a given stimulus or request.

Podcasting Channel

Series of regular recordings on a consistent theme.