When a Fire Truck Purchased from General Fund Revenues Is

question 40

Multiple Choice

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

• A) No journal entry should be made in the General Fund.
• B) Expenditures.
• C) Encumbrances.
• D) Equipment.

---

Definitions:

Interest-Only

A loan payment option where the borrower is required to pay only the interest portion for a specific period.

Balloon Loan

A type of loan that typically requires small periodic payments and a large lump sum payment at the end of the loan term.

Amortized Loan

A loan with scheduled periodic payments that include both principal and interest.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.