Question

Capital assets used by an enterprise fund should be accounted for in the:_________.
a. Business-type activities journal but no depreciation on the capital assets should be recorded.
b. Enterprise fund and depreciation on the capital assets should be recorded
c. Governmental activities journal and depreciation on the capital assets should be recorded
d. Enterprise fund but no depreciation on the capital assets should be recorded

Answer 1

Answer:

b. Enterprise fund and depreciation on the capital assets should be recorded

Explanation:

• The capital assets used by the enterprise fund should be included in the enterprise fund and the depreciation on the capital assets should be recorded.
• Depreciation on capital assets should be recorded based on the useful life of the asset appraisal.
• so correct answer b. Enterprise fund and depreciation on the capital assets should be recorded