When the Materials and Supplies Are Received and the Invoice

question 6

Multiple Choice

When the materials and supplies are received and the invoice is more than the related purchase order, this entry should be made:

• A) Debit Expenditures Control for the amount of the invoice.
• B) Debit Expenditures Control for the amount of the purchase order.
• C) Credit Accounts Payable for the amount of the purchase order.
• D) Credit Encumbrances Control for the amount of the invoice.

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Definitions:

Unilateral Transfer

A one-way transfer of money, goods, or services from one country to another, without a direct or equivalent return.

Foreign Investments

Investments made by individuals, companies, or governments in assets or business ventures in another country.

Charitable Donations

Financial or material contributions made to non-profit organizations or causes without expecting anything in return.

Unfavorable Balance

A situation where a country imports more than it exports, resulting in a trade deficit.