A county reports total expenses of governmental activities of $200 million, but total governmental fund expenditures of $90 million. Which item below would help explain why expenses of governmental activities are higher than governmental fund expenditures?

Question

Quizplus · Accepted Answer

Depreciation on buildings and equipment is recorded as an expense in governmental activities but not in governmental fund expenditures, which are reported on a modified accrual basis and do not include depreciation.

A County Reports Total Expenses of Governmental Activities of $200