A Federal Agency That Uses Commitment Accounting Makes a Commitment

question 17

Multiple Choice

A federal agency that uses commitment accounting makes a commitment for supplies in the amount of $40,000.When it places the purchase order,however,the cost of the supplies is only $38,000.How is the $2,000 difference accounted for in the budgetary accounts?

• A)No budgetary entry is needed at this point in the budgetary accounting cycle.
• B)Commitments is debited for $40,000,Allotments - realized resources is credited for $2,000,and Undelivered orders - obligations,unpaid is credited for $40,000.
• C)Commitments is debited for $38,000 and Undelivered orders - unpaid is credited for $38,000.
• D)Allotments - realized resources is debited for $2,000 and Commitments is credited for $2,000.

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Definitions:

Emphasizing Strengths

The practice of focusing on and leveraging an individual's or group's strong points and abilities in various contexts.

Mezzo Levels

Pertaining to the intermediate level, especially in social work, focusing on small-to-medium-sized groups such as neighborhoods, schools, or other local community groups.

Micro Levels

Focuses on individual or small group interactions in sociology or social work.

Formulating Objectives

The process of defining specific, measurable, achievable, relevant, and time-bound goals in planning stages.