When a governmental hospital that meets the definition of an enterprise fund purchases a building, it must report the entire cost of the building as a capital expenditure.

Question

Quizplus · Accepted Answer

Because full accrual accounting is used for governmental hospitals that meet the definition of an enterprise fund, items of property, plant, and equipment are recorded as assets when acquired and are depreciated over their useful lives.

When a Governmental Hospital That Meets the Definition of an Enterprise