In government-wide statements, an asset such as a city hall building that is used by governmental activities would appear where?

• A. In the fund balance sheet.
• B. In the capital assets schedule only.
• C. Not at all.
• D. In the governmental activities column of the government-wide statements.

Answer: (D)

In government-wide statements, long-term assets and liabilities for the entire government are shown. A city hall building used by governmental activities is a capital asset of the government, not a fund resource. It appears in the government-wide statements, specifically in the governmental activities column of the statement of net position (as a capital asset, net of accumulated depreciation). Depreciation from using the asset affects the government’s net position over time. It wouldn’t appear only in a fund balance sheet or solely in a capital assets schedule, because the government-wide statements consolidate these long-term resources for the whole government.