When equipment that is to be used by the General Fund is received, how should it be recorded?
A) Capital Asset.
B) Appropriation.
C) Encumbrances.
D) Expenditure.

Question

Quizplus · Accepted Answer

When equipment intended for use by the General Fund is received, it should be recorded as an expenditure. This is because, in governmental accounting, purchases of capital assets by the General Fund are typically expensed in the period acquired, rather than capitalized.

When Equipment That Is to Be Used by the General