Final answer:
Capital assets used in governmental activities are reported in governmental-wide financial statements only, as they provide a broader perspective on the government's financial status.
Step-by-step explanation:
Capital assets used for governmental activities, such as those of the police department, should be reported in governmental-wide financial statements only. This is because, while governmental funds focus on near-term inflows, outflows, and balances of spendable resources, the government-wide financial statements provide a broader perspective of the government's overall financial status, including long-term assets and liabilities.
The Census Bureau, the U.S. Department of the Treasury, and the Census of Governments all play roles in gathering data related to government spending on assets and payroll, which ultimately affect how this information is presented in the financial statements.