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The City of Lavender adopts its budget on a basis of accounting that permits outstanding purchase commitments to be charged against the budget in the
The City of Lavender adopts its budget on a basis of accounting that permits outstanding purchase commitments to be charged against the budget in the year that the goods are ordered instead of in the year they are received. During 2024, the city received $4,000 of supplies (of which $3,000 had been ordered in 2024 and $1,000 was ordered in 2023) and had $500 of outstanding purchase commitments for supplies at year-end. In the budget-to-actual comparison, the expenditures for supplies would be: Group of answer choices $3,000. $3,500. $4,000
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