Depreciation was calculated for the police department's vehicle fleet. The expense will be reported

Question

Quizplus · Accepted Answer

Depreciation of an asset used for a specific function, in this case public safety, should be reported as a function expense in the government-wide financial statements. Therefore, the depreciation expense should be reported in the public safety function of governmental activities. Options A and B are incorrect because the General Fund is only used to report day-to-day operating transactions, not long-term capital asset transactions like depreciation. Option D is incorrect because it suggests the depreciation expense is unallocated, which is not the case.

Depreciation Was Calculated for the Police Department's Vehicle Fleet