D is corrent because per GASB Codification Section 1400, Internal Service funds provide services on a cost basis to other governmental funds (e.g., central data processing, motor pools, etc.) Thus, in order to recoup the costs of capital assets, depreciation must be taken and computed in the service charges to other funds. In other words, the Internal Service Fund needs to account for its costs very similarly to that of a business enterprise to be able to determine adequate fees for its services.
A is incorrect because per GASB Codification Section 1400, the Capital Projects Fund is not used to record fixed assets or depreciation. The Capital Projects Fund is used for the accounting of the acquisition and use of resources for the purchase or construction of major, long-lived assets (except for those financed by the Internal Service or Enterprise Funds); while the asset acquired or constructed is displayed only in the government-wide statements.
B is incorrect because per GASB Codification Section 1400, the general fund is not used to record fixed assets or depreciation. Fixed assets arising from expenditures by this governmental fund are displayed only in the government-wide statements.
C is incorrect because per GASB Codification Section 1400, the Special Revenue Fund does not record fixed assets or depreciation. Fixed assets arising from expenditures by this governmental fund are displayed only in the government-wide statements.
|
