When a fire truck purchased from General Fund revenues is received, which General Fund account should be debited?

• A. Expenditures
• B. Assets
• C. Encumbrances
• D. Appropriations

Answer: (A)

In the General Fund, a long‑term asset purchase is recorded as an expenditure when the goods are received. The fund’s focus is on current financial resources, so the outlay for the fire truck is shown as an expenditure rather than directly recording an asset there. The actual asset would appear on the government-wide financial statements later as a capital asset, but in the General Fund the immediate recognition is an expenditure.

So, when the fire truck is received, you debit Expenditures (to reflect the outlay from general revenues) and credit Cash or Accounts Payable, depending on whether you’ve paid or incurred a liability. Encumbrances would have been set up earlier to show a commitment, and Appropriations relate to budget authority, not the actual receipt of goods. That’s why Expenditures is the appropriate General Fund debit.