In government-wide statements, an asset appears only in Governmental Activities. Which option reflects this statement?

• A. Asset appears in Governmental Activities and General Fund
• B. Asset appears in General Fund only
• C. Asset appears in neither
• D. Asset appears only in Governmental Activities

Answer: (D)

In government-wide statements, long-term assets such as capital assets are reported for the government as a whole on the accrual basis. Fund financial statements, like the General Fund, use a current financial resources focus and modified accrual, so they do not present long-term assets. Because of this separation, a capital asset that belongs to the government and is not part of a particular fund’s current resources will appear in the Governmental Activities column of the government-wide statements, but not in the General Fund. So describing an asset that shows up only in Governmental Activities aligns with how capital assets are accounted for across the two reporting levels.