Which of the following account captions are you most likely to see on a governmental funds balance sheet?
A)bonds payable
B)accumulated depreciation
C)inventory
D)land

Question

Quizplus · Accepted Answer

Governmental funds use the current financial resources measurement focus and the modified accrual basis of accounting. This means they recognize only current assets and liabilities. Inventory is considered a current asset, making it likely to appear on a governmental funds balance sheet. Bonds payable and accumulated depreciation are long-term in nature and would not appear on the balance sheet of governmental funds. Land is considered a non-current asset and, therefore, is also not recognized on the balance sheet of governmental funds.

Which of the Following Account Captions Are You Most Likely