If general capital assets are donated, revenue related to the donation is recognized in the governmental fund statement of revenue, expenditures and changes in fund balance.

Question

Quizplus · Accepted Answer

General capital asset donations are not recognized as revenues in the governmental funds statement of revenue, expenditures, and changes in fund balances because these funds use the modified accrual basis of accounting, which focuses on current financial resources and expenditures, not on capital transactions.

If General Capital Assets Are Donated, Revenue Related to the Donation