Which of the Following Statements Is Correct Regarding Depreciation

question 20

Multiple Choice

Which of the following statements is correct regarding depreciation?

• A) Depreciation expense should be recorded in the appropriate governmental funds, and recorded in the governmental activities accounts.
• B) Depreciation expense must be recorded in the governmental fund, but no depreciation expense is recorded in the governmental activities accounts.
• C) No depreciation can be recorded in any governmental fund, but depreciation expense must be recorded in the governmental activities accounts.
• D) No depreciation can be recorded in any governmental fund, nor is it permissible to record depreciation expense in the governmental activities accounts.

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Definitions:

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Access passes purchased by individuals to attend live performances of music or other entertainment events.

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The service provided by taxis or ride-sharing vehicles, offering transportation for passengers from one location to another.

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The combination of goods and services that maximizes a consumer's utility given their budget constraints.

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The further benefit or pleasure derived by consuming an additional unit of a given good or service.