Depreciation on capital assets is included as an expense in the Statement of Revenues,Expenses,and Changes in Fund Net Assets in the proprietary fund financial statements

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces the value of capital assets over their useful life. It is included as an expense in the Statement of Revenues, Expenses, and Changes in Fund Net Assets in the proprietary fund financial statements because it reflects the cost of the assets used to generate revenue in the current period.

Depreciation on Capital Assets Is Included as an Expense in the Statement