Which of the following would be considered a general capital asset?

• A. A vehicle purchased from General Fund revenues.
• B. A building financed by a dedicated or special revenue fund.
• C. Inventory held for sale to the public.
• D. Cash in the General Fund.

Answer: (A)

General capital assets are long-lived assets that a government acquires with general fund resources to help provide its broad, nonprogram-specific services. They are the assets you would capitalize in government-wide reports and depreciate over their useful lives, because they support the general operations of the government rather than a particular program or restricted fund.

A vehicle bought with General Fund revenues is a general capital asset because it is a long-lived asset funded by the general fund and used to support general governmental operations. If the asset were financed by a dedicated or special revenue fund, it would belong to that fund rather than be classified as a general capital asset. Inventory held for sale to the public is not a capital asset but current inventory, and cash in the General Fund is a financial resource, not a capital asset.