Because the GCA-GLTL g/l reflects accumulated depreciation, depreciation expense will be reported in the General Fund's operating statement at both reporting levels.

Question

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Depreciation expense is not reported in the General Fund's operating statement because the General Fund uses the modified accrual basis of accounting, which does not recognize depreciation. Depreciation is typically reported in government-wide financial statements, which use the accrual basis of accounting.

Because the GCA-GLTL G/l Reflects Accumulated Depreciation, Depreciation Expense Will