Question

General fixed assets are excluded from governmental funds because

A) The measurement focus of governmental funds is on financial resources.
B) They are not used to used generate revenues.
C) The basis of accounting is accrual.
D) None of the above.

Answer 1

The measurement focus of governmental funds is on financial resources.

The assets utilized by enterprises assessed by federal fund types. Accounting is performed at the Government-wide level chosen from capital assets that are particularly connected with actions described in established and fiduciary stocks. The General Fixed Assets is pointed to account for fixed assets procured or accumulated for application by the State for overall administrative plans. These consolidate all fixed assets excluding those considered for in Proprietary and Pension Trust Funds.