Choice "A" is correct. Since proprietary funds and trust funds use the full accrual basis of accounting and economic measurement focus, fixed assets of those funds are accounted for within those funds. All other fixed assets of the governmental unit are considered general capital assets and are recorded in the governmental activities column of the government-wide statement of net position.Choice "d" is incorrect. The general fund is used to account for financial resources only. Capital assets and long-term liabilities are not accounted for in the general fund since they will neither provide nor use financial resources.
Choice "c" is incorrect. Capital projects funds account for the sources and uses of financial resources in the construction of major fixed assets. Once constructed, the capital asset is no longer accounted for through the capital projects fund since it will neither provide nor use financial resources.
Choice "b" is incorrect. The permanent fund is used to account for assets whose principal cannot be spent. Capital assets are not recorded in the permanent fund.