Depreciation Expense for the Current Year Was $366,750 in the Water

question 20

Multiple Choice

Depreciation expense for the current year was $366,750 in the Water Enterprise Fund. Depreciation expense will be reported at the government-wide level as

• A) Part of unallocated depreciation expense in governmental activities.
• B) Part of unallocated depreciation expense in the business-type activities.
• C) Part of the business-type activities expenses for the water activity.
• D) Capital outlay expenses in business-type activities.

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Definitions:

Price Inelastic

A situation in which the demand for a product does not change significantly in response to a change in its price.

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a specific price in a given time period.

Electricity

A form of energy resulting from the existence of charged particles, commonly used for power and lighting.

Quantity Demanded

represents the total amount of a product or service consumers are willing and able to purchase at a given price level, within a specific time period.