In reconciling between the governmental fund and government-wide statements, capital assets acquired by a governmental fund are deducted from fund balance-governmental funds to arrive at net position of governmental activities.

Question

Quizplus · Accepted Answer

In reconciling between the governmental fund and government-wide statements, capital assets acquired by a governmental fund are added (not deducted) to arrive at the net position of governmental activities, as governmental funds report capital outlays as expenditures, but government-wide statements report them as assets.

In Reconciling Between the Governmental Fund and Government-Wide Statements, Capital