The General Fund of the City of Plymouth purchased a police car in the amount of $25,000.Which of the following would be true?

Question

Quizplus · Accepted Answer

The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $25,000 because it is a record of the financial transactions of the General Fund, which is a governmental fund used to account for most of the city's functions, including police services. The expenditure represents a decrease in the fund balance, which is reported in the statement. The government-wide Statement of Activities, on the other hand, reports expenses and revenues for all governmental and business-type activities, and includes a depreciation expense for capital assets, such as the police car, but the purchase of the car would not be reported as an expense.

The General Fund of the City of Plymouth Purchased a Police