Which fund would most likely report depreciation expense?
A)A special revenue fund
B)An enterprise fund
C)A capital projects fund
D)A debt service fund

Question

Quizplus · Accepted Answer

An enterprise fund is a type of government fund that operates like a business, providing goods or services to the public for a fee. As such, it is required to report depreciation expenses on its fixed assets like any other business, to reflect wear and tear over time. Special revenue funds, capital projects funds, and debt service funds are not expected to report depreciation expense as they do not operate like typical profit-making entities.

Which Fund Would Most Likely Report Depreciation Expense