Question: On February 15 2013 the Town of Hillsboro police chief s

On February 15, 2013, the Town of Hillsboro police chief’s administrative assistant is preparing a purchase order to place an order for a new computer. The computer is estimated to cost $1,500. Prior to submitting the purchase order, he is required to verify that an appropriation is available in a sufficient amount to cover the cost of the new computer. His computer display shows the following current information for the Police Chief Equipment account.

Review the Police Chief Equipment account as of February 15, 2013, and answer the following questions, assuming you are the administrative assistant.
a. Is the available appropriation balance sufficient to authorize placing the purchase order for the new computer?
b. Would you be concerned that this purchase could exceed the available appropriation? What actions might you consider to mitigate this concern?
c. What action would you take if the available appropriation balance were less than$1,500?
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  • CreatedJanuary 11, 2014
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