Accumulated Depreciation appears on the
a. balance sheet in the current assets section
b. balance sheet in the property, plant, and equipment section
c. balance sheet in the long-term liabilities section
d. income statement as an operating expense
Question 2
A government had capital outlay expenditures of 226,000 during the year for the public safety function accounted for in the General Fund.
It was determined that 195,000 of the capital outlay should be reported as capital assets in the government-wide financial statements. What would the one-worksheet conversion adjustment be to record the capital assets as a governmental activity?
Debit Credit
A. Capital Outlay Expenditures
Fund Balance 226,000
226,000
B. Capital Assets
Capital Outlay Expenditures 195,000
195,000
C. Capital Assets
Capital Outlay Expenditures 226,000
226,000
D. Capital Assets
Expenses Public Safety
Capital Outlay Expenditures 195,000
31,000
226,000
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