General capital assets are not reported in governmental funds because of the funds' measurement focus (current financial resources).

Question

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General capital assets are not reported in governmental funds because these funds use the current financial resources measurement focus, which means reporting only assets that can be spent or converted into cash in the short term. Capital assets, such as buildings or infrastructure, are long-term assets that are not considered current financial resources in governmental funds. These assets are instead reported in the government-wide financial statements, which use the economic resources measurement focus.

General Capital Assets Are Not Reported in Governmental Funds Because