When purchase orders are filled and the invoice amount differs from the estimated amount, the amount reversed from the encumbrance account equals the invoice amount.
Answer the following statement true (T) or false (F)
False
When purchase orders are filled and the invoice amount differs from the estimated amount, the amount reversed from the encumbrance account equals the amount of the original purchase order. A liability will be recorded for the invoice amount.
You might also like to view...
Coll Company (the parent company) manufactured a product at a cost of $150 and sold it to Obman Company, a subsidiary of Coll, for $200 . Obman Company sold the product to its customer for $284 . As a result of these transactions, how much gross profit will appear on a consolidated income statement?
a. $134 b. $84 c. $234 d. $0
A(n) ________ is a written law enacted by the legislative branch of the federal and state governments that establishes certain courses of conduct to which covered parties must adhere
A) charter B) treaty C) executive order D) statute
In order to create a new marketing plan for Mountain Dew, the company has completed a detailed SWOT analysis to assess the current strengths, weaknesses, opportunities, and threats to the brand. The next step in creating a marketing plan will be to
A. determine specific marketing objectives. B. evaluate potential marketing objectives. C. decide which advertising media will best reach its target markets. D. design marketing tactics. E. establish advertising strategy.
Sue Shells, Inc. pays back $200,000 on a loan it had obtained earlier from a bank.
A. Assets decrease by $200,000 and liabilities increase by $200,000. B. Assets decrease by $200,000, liabilities are unchanged, and stockholders' equity decreases by $200,000. C. Assets decrease by $200,000; liabilities and stockholders' equity are both unchanged. D. Assets decrease by $200,000, liabilities decrease by $200,000, and stockholders' equity is unchanged.