On the statement of revenues, expenditures, and changes in fund balance for governmental funds, how are capital outlays reported?
A) As a separate line item in the expenditures section of the statement.
B) Capital outlays are allocated to the functional areas, much like depreciation.
C) As a separate line item in the other financing sources (uses) section of the statement.
D) Below net change in fund balances, but before beginning fund balance.

Question

Quizplus · Accepted Answer

Capital outlays are reported as a separate line item in the expenditures section of the statement of revenues, expenditures, and changes in fund balance for governmental funds. This allows for clear identification of the amount spent on capital assets during the period.

On the Statement of Revenues, Expenditures, and Changes in Fund