What Account Is Debited in the General Fund When Equipment

question 42

Multiple Choice

What account is debited in the general fund when equipment is received by a governmental entity?

• A) Expenditures.
• B) Encumbrances.
• C) Plant assets.
• D) Accounts Payable.
• E) Fund Balance-Reserve for Encumbrances.

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Definitions:

Partnership Basis

The amount invested in a partnership by the partners, adjusted for additions, withdrawals, and the individual's share of partnership profits or losses.

Partnership Basis

Refers to an individual partner's investment in a partnership, used for determining the tax implications of the partnership's operations on the individual.

Equal Partners

Individuals or entities that share equally in the rights, responsibilities, and profits of a partnership.

Step-Into-The-Shoes

A term relating to the transfer of tax basis from one party to another, preserving the original cost basis for tax calculation.