_____ Repairs that have been made for a governmental unit and for which a bill has been received should be recorded in the General Fund as a debit to
A) Expenditures.
B) Encumbrances.
C) Expenses.
D) Appropriations.
E) None of the above.

Question

Quizplus · Accepted Answer

Expenditures are the correct account to debit for repairs made for a governmental unit when a bill has been received. This is because, in governmental accounting, expenditures represent the amount of resources used or consumed during a period, which in this case is the cost of repairs. Encumbrances are used to record commitments related to unperformed contracts for goods or services, expenses are used in proprietary and fiduciary funds, and appropriations represent authorized spending levels, not actual spending.

_____ Repairs That Have Been Made for a Governmental Unit