Question

In which of the following funds is it appropriate to record depreciation of capital assets?

1) Internal service fund.
2) Permanent fund.
3) General fund.
4) Capital projects fund.

Answer 1

Depreciation of capital assets should be recorded in Internal service fund, Permanent fund, and Capital projects fund.

Step-by-step explanation:

Depreciation of capital assets is appropriate to record in the following funds:

1. Internal service fund
2. Permanent fund
3. Capital projects fund

Depreciation is the process of allocating the cost of a capital asset over its useful life. These funds typically have capital assets that are used over multiple years, such as equipment or infrastructure. Therefore, it is important to record the depreciation expense in order to accurately reflect the decrease in value of these assets over time.