A general capital asset constructed several years ago by a capital projects fund was sold by the General Fund. Entries are necessary in the:

Question

Quizplus · Accepted Answer

When a general capital asset is sold by the General Fund, entries are necessary in both the General Fund and governmental activities. The General Fund records the receipt of cash and other immediate financial effects of the sale, while the governmental activities level records the disposal of the capital asset and any related gains or losses, adjusting the overall financial position of the government.

A General Capital Asset Constructed Several Years Ago by a Capital