Final answer:
General fixed assets are not included in governmental funds due to the focus on financial resources within those funds. Money is an example of financial capital, which does not fit the criteria for a capital asset as it doesn't produce goods or services directly. The correct choice of action is focus of governmental funds is on financial resources.
Step-by-step explanation:
General fixed assets are excluded from governmental funds because the measurement focus of governmental funds is on financial resources. This means that governmental funds primarily report on the inflow, outflow, and balances of liquid financial resources, rather than non-liquid assets such as property and equipment which are considered general fixed assets.
These non-liquid assets are typically long-term in nature and are not converted to cash for financial operations or to repay current-period obligations.
Money, while it is a form of financial capital, is not considered a capital asset in this context because it does not directly produce goods or services. Firms use money to acquire capital, but it is not an asset that generates revenue through its direct use. Instead, money and other financial assets, like stocks and bonds, are more about a representation of value that can be used to acquire actual production factors or goods and services.