This is the point when a proprietary entry and a budgetary entry must both be recorded:
Proprietary entry: To record the asset (e.g., equipment) and recognize the payable
Budgetary entry: To move from unpaid obligation (Undelivered Orders) to paid obligation (Delivered Orders)
Receiving goods/services triggers both the accrual of the expense and the update of the obligation’s status in the budgetary accounts.
Relevant References:
FASAB SFFAS No. 1 – Accounting for Selected Assets and Liabilities
Treasury Financial Manual, Part 2, Ch. 4700 – Proprietary vs. Budgetary Accounting
GAO Red Book – Appropriations Law
Answer: B. A contracting officer's representative receives delivery of previously ordered printers.
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