Which of the Following Would Increase the Governmental Activities Balance

question 7

Multiple Choice

Which of the following would increase the governmental activities balance in Net Position-Net Investment in Capital Assets?

• A) Acquisition of a building to be used by the police department.
• B) Issuance of long-term debt to be used to acquire equipment for the police department.
• C) A gift of land to the city restricted by the donor to be used by the city airport, which is accounted for as an enterprise fund.
• D) Recording annual depreciation on capital assets.

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