In budgeting for governmental funds, governments appropriate the resources for general capital assets in the periods when they are to be purchased, not in the periods in which the assets will be used.

Question

Quizplus · Accepted Answer

In governmental fund accounting, appropriations for the purchase of general capital assets are typically made in the fiscal period in which the assets are to be acquired, rather than in the periods in which the assets will be utilized. This approach aligns with the modified accrual basis of accounting used by governmental funds, where expenditures are recognized in the period in which they are incurred.

In Budgeting for Governmental Funds, Governments Appropriate the Resources for General