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,000 is recorded in the general fund for the purchase of new equipment. The equipme quipment is increased in the general fund by $5,150. b. An expenditure is increased by nal $150.

,000 is recorded in the general fund for the purchase of new equipment. The equipme quipment is increased in the general fund by $5,150. b. An expenditure is increased by nal $150.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A purchase order for $5,000 is recorded in the general fund for the purchase of new equipment. The equipment is received at an actual cost of $5,150. Which of the following statements is correct? Select one: a. Equipment is increased in the general fund by $5,150. b. An expenditure is increased by $5,150. c. An encumbrance account is reduced by $5,150. d. An expenditure is recorded for the additional $150.
Transcribed Image Text:A purchase order for $5,000 is recorded in the general fund for the purchase of new equipment. The equipment is received at an actual cost of $5,150. Which of the following statements is correct? Select one: a. Equipment is increased in the general fund by $5,150. b. An expenditure is increased by $5,150. c. An encumbrance account is reduced by $5,150. d. An expenditure is recorded for the additional $150.
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