Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A)Depreciation is recorded as an expense in an agency's proprietary accounts.
• B)Vacation leave cannot be accrued at year-end unless the agency has sufficient appropriated funds to pay for it.
• C)The account Undelivered orders - obligations,unpaid remains open at year-end until it is paid in the following year.
• D)If the agency receives an invoice in an amount greater than the amount of the purchase order and agrees that invoice amount is correct,an adjustment is needed to the account "Allotments - realized resources."

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Definitions:

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the decrease in value due to wear and tear over time.

Cost of Goods Sold

The immediate expenses related to the manufacturing of products which a business sells, covering materials and workforce.

Depreciation Expense

An accounting method to allocate the cost of a tangible or physical asset over its useful life.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue; often called the bottom line.