Which of the following would decrease the governmental activities balance in Net Position-Net Investment in Capital Assets?
A) An increase in accumulated depreciation.
B) Acquisition of a capital lease.
C) Sale of a fully depreciated capital asset.
D) Receipt of a capital grant that has not been expended at fiscal year-end.

Question

Quizplus · Accepted Answer

An increase in accumulated depreciation reduces the net book value of capital assets, thereby decreasing the Net Investment in Capital Assets.

Which of the Following Would Decrease the Governmental Activities Balance