In government-wide financial statements, an asset purchased by a department with general revenues is reported where?

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Multiple Choice

In government-wide financial statements, an asset purchased by a department with general revenues is reported where?

Explanation:
In government-wide financial statements, the government’s resources are shown on an economic basis, with capital assets carried in the Governmental Activities column. An asset purchased with general revenues is owned by the government as a whole, not by a single fund, so it is capitalized and reflected in Governmental Activities. The General Fund is a fund-level presentation that shows resources and transactions within that fund, not the government-wide capital assets. Therefore, the asset appears in Governmental Activities only, not in the General Fund.

In government-wide financial statements, the government’s resources are shown on an economic basis, with capital assets carried in the Governmental Activities column. An asset purchased with general revenues is owned by the government as a whole, not by a single fund, so it is capitalized and reflected in Governmental Activities. The General Fund is a fund-level presentation that shows resources and transactions within that fund, not the government-wide capital assets. Therefore, the asset appears in Governmental Activities only, not in the General Fund.

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