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If Invoices for Items Purchased Total $200,000 and Related Purchase

Question 101

Multiple Choice

If invoices for items purchased total $200,000 and related purchase orders total $185,000, which of the following is correct?


A) An encumbrance is debited for $200,000
B) Reserve for encumbrances is credited for $200,000
C) An expenditure is credited for $185,000
D) A liability is credited for $200,000

Correct Answer:

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