1. When supplies ordered by a governmental unit are received at
an actual price which is more than the estimated price on the
purchase order, the Encumbrance Control account is:
A. Credited for the original estimated price for the supplies
received
B. Credited for the actual price on the purchase order
C. Debited for the estimated price on the purchase order
D. Debited for the actual price for the supplies received
2. A local government was awarded a federal grant in the amount
of $800,000 to provide for a summer youth employment program for
young people. The grant was a reimbursement grant and a
notification of the grant award was received on Apri1 30, 2009. The
local government expended the resources as follows:
· June, 2009, $300,000;
· July, 2009, $250,000;
· August, 2009, $250,000
The federal government sent the funds in the month following the
expenditure. The local government would recognize revenues for the
fiscal year ended June 30, 2009 in which amount?
A. $0
B. $300,000
C. $550,000
D. $800,000
