The City of the parks department uses general revenues for operations. An asset would be recorded in which journals?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Enhance your knowledge of GASB and FASAB Standards. Study with multiple choice questions, hints, and detailed explanations. Prepare efficiently for your exam!

Multiple Choice

The City of the parks department uses general revenues for operations. An asset would be recorded in which journals?

Explanation:
Under GASB, assets that belong to the government as a whole—such as capital assets owned by the parks department—are reported in the government-wide statements using accrual accounting. The General Fund, which uses the modified accrual basis for current financial resources, does not record long-term assets. So an asset tied to ongoing operations would appear in the governmental activities section (government-wide) and not in the General Fund. That’s why the correct result is: not in the General Fund, but yes in Governmental Activities.

Under GASB, assets that belong to the government as a whole—such as capital assets owned by the parks department—are reported in the government-wide statements using accrual accounting. The General Fund, which uses the modified accrual basis for current financial resources, does not record long-term assets. So an asset tied to ongoing operations would appear in the governmental activities section (government-wide) and not in the General Fund. That’s why the correct result is: not in the General Fund, but yes in Governmental Activities.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy