A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by this agency. At the time the order is placed, what is the net effect on the budgetary and proprietary track accounts?

Question

Quizplus · Accepted Answer

When an order is placed, the budgetary accounts are affected by the estimated cost of the order ($14,400 in this case), but the proprietary accounts are not affected until the actual cost is known and the goods are received.

A Certain Federal Agency Placed an Order for Office Supplies