Question

When a fire truck purchased from General Fund revenues is received, what account, if any, should have been debited in the General Fund?

a. Equipment
b. Expenditures
c. No journal entry should be made in the General Fund
d. Encumbrances

Answer 1

When a fire truck purchased from General Fund revenues is received, the account that should have been debited in the General Fund is Equipment.

Step-by-step explanation:

When a fire truck purchased from General Fund revenues is received, the account that should have been debited in the General Fund is Equipment. This is because the fire truck is considered a capital asset and should be recorded as an expenditure for equipment.