Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?
A) Acquisition of a building to be used by the police department.
B) Issuance of long-term debt to be used to acquire equipment for the police department.
C) A gift of land to the city restricted by the donor to be used by the city airport, which is accounted for as an enterprise fund.
D) Recording annual depreciation on capital assets.

Question

Quizplus · Accepted Answer

Acquisition of a building for governmental activities increases the net investment in capital assets, which is a component of the governmental activities balance in Net Position.

Which of the Following Would Increase the Governmental Activities Balance