Which of the following statements is true concerning intragovernmental transfers of capital assets?

Question

Quizplus · Accepted Answer

If a proprietary fund donates a capital asset to a general government department, it will be reported as a nonoperating expense in the proprietary fund but as a transfer between activities at the government-wide level. Intragovernmental transfers of capital assets are reported differently at the fund level and the government-wide level. At the fund level, the transaction is recorded as an expense or revenue, while at the government-wide level, it is reported as a transfer between activities. Choice A, C, and D are incorrect because they have incorrect information about the debit account and/or the net book value/original cost of the donated asset.

Which of the Following Statements Is True Concerning Intragovernmental Transfers