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

Question

Quizplus · Accepted Answer

The correct account to debit when a fire truck purchased from General Fund revenues is received is "Expenditures." This is because in governmental accounting, especially under the modified accrual basis used in the General Fund, the purchase of capital assets like a fire truck is recorded as an expenditure rather than capitalizing the asset in the fund from which it was purchased.

When a Fire Truck Purchased from General Fund Revenues Is