Depreciation expense is never reported in the operating statement of any of the governmental funds at the fund-based reporting level.

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Quizplus · Accepted Answer

In governmental funds, expenses are reported on a modified accrual basis, which does not include depreciation as it is a non-cash expense. Depreciation is typically reported in the government-wide financial statements, not in the fund-based financial statements.

Depreciation Expense Is Never Reported in the Operating Statement of Any