A is corrent because when the truck was ordered, the Encumbrance Account was debited for the estimated price of the truck by making the following entry:
B is incorrect because the Encumbrances Control account is debited at the time of order, not receipt.
C is incorrect because no fixed assets are recorded in the General Fund. Per GASB Codification Section 1400, general fixed asset acquisitions require the use of governmental fund financial resources and are recorded as expenditures.
D is incorrect because appropriations represent maximum expenditure authority and are integrated into the accounting system when the budget is recorded and removed when the budgetary accounts are closed out.
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