A city should record depreciation as an expense in its:
A) general fund and enterprise fund.
B) internal service fund and general fund.
C) enterprise fund and internal service fund.
D) enterprise fund and capital projects fund.

Question

Quizplus · Accepted Answer

Depreciation is recorded as an expense in full accrual accounting systems, which are used by enterprise funds and internal service funds. General funds and capital projects funds use modified accrual accounting, where depreciation is not recorded as an expense.

A City Should Record Depreciation as an Expense in Its