The Expenditures control account of a government is debited when
A) The budget is recorded.
B) Supplies are ordered.
C) Supplies previously encumbered are received.
D) The invoice is paid.

Question

Quizplus · Accepted Answer

The Expenditures control account should be debited only when the supplies previously encumbered are received. When the budget is recorded, the balance in the Expenditures control account is not affected. When supplies are ordered, the liability account for encumbered purchase orders is credited, not the Expenditures control account. And the invoice is paid, the cash account and the accounts payable account are affected, but again, not the Expenditures control account.

The Expenditures Control Account of a Government Is Debited When