Enterprise funds report capital contributions separate from operating and nonoperating revenues and expenses.When does an inflow of resources constitute a capital contribution?
A)when the inflows must be used to purchase capital assets or consist of capital assets
B)when the inflows are grants restricted to use on capital projects
C)when the contributions are from property owners
D)when the inflow consists of donated capital assets

Question

Quizplus · Accepted Answer

An inflow of resources constitutes a capital contribution when the inflows must be used to purchase capital assets or consist of capital assets, as these are directly related to capital financing and investment activities.

Enterprise Funds Report Capital Contributions Separate from Operating and Nonoperating