Question

In the statement of activities, depreciation is reported on Group of answer choices Only depreciable capital assets of governmental activities of the government. All depreciable capital assets of the government except infrastructure assets that use the modified approach. Only depreciable capital assets of business-type activities of the government. All depreciable capital assets of the government.

Answer 1

All depreciable capital assets of the government.

Step-by-step explanation:

In Governmental Accounting Standards Board (GASB) rules, the statement of activities refers to the government's or public entity's income statement. It basically lists total revenues minus total expenses. It is divided into 3 categories:

1. Expenses - all costs incurred including future payments and depreciation accounts (including both governmental and business-type activities).
2. Program revenue - includes all revenues generated from government services, e.g. garbage collection, municipal utilities, or even parking fines.
3. Net cost of services - used for services that cannot support themselves, like schools, parks, emergency services, etc., which must rely on taxes.