To prepare the governmental activities column of the government-wide statement of net position, expenditures for capital outlay reported in governmental funds during the current year should be reclassified as capital outlay expenses.

Question

Quizplus · Accepted Answer

To prepare the governmental activities column of the government-wide statement of net position, expenditures for capital outlay reported in governmental funds during the current year should be reversed and instead reported as capital assets.

To Prepare the Governmental Activities Column of the Government-Wide Statement