Assume a federal agency places orders for contracted services supporting a federal program.The journal entries at the agency level to record this event will include:

Question

Quizplus · Accepted Answer

When a federal agency places orders for contracted services, it records an obligation. This is reflected as a credit to the account "Obligations - Undelivered Orders" to indicate that funds have been committed but not yet expended.

Assume a Federal Agency Places Orders for Contracted Services Supporting