_____ For governmental funds at the fund-based reporting level, which statement is correct?
A) Depreciation expense is never reported.
B) Reporting depreciation expense is optional.
C) Capital assets are reported in these funds but are not depreciated.
D) Capital assets are not reported in these funds, but depreciation expense is reported.
E) None of the above.

Question

_____	For governmental funds at the fund-based reporting level, which statement is correct?
A) Depreciation expense is never reported.
B) Reporting depreciation expense is optional.
C) Capital assets are reported in these funds but are not depreciated.
D) Capital assets are not reported in these funds, but depreciation expense is reported.
E) None of the above.

Quizplus · Accepted Answer

Depreciation expense is not reported in governmental funds at the fund-based reporting level because these funds use the modified accrual basis of accounting, which does not recognize long-term assets or liabilities, including depreciation.

_____ for Governmental Funds at the Fund-Based Reporting Level, Which Statement