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:

Quasi-Contracts

Legal obligations imposed by a court to prevent unjust enrichment, even when no actual contract exists.

Implied-In-Law Contract

A legally enforceable agreement created by a court order, not explicit agreement, to ensure fairness and prevent unjust enrichment.

Actual Contracts

Legally binding agreements created by the actions, behavior, or circumstances of the parties involved, rather than by written or spoken words.

Arbitration Agreement

A contract in which parties agree to resolve disputes through arbitration instead of through the court system.