A governmental (expendable) fund accounting entity

a. is often useful in accounting for general government activities but is optional

(expendable).

b. includes only financial assets and related liabilities and depreciable (expendable) capital assets. Non depreciable capital assets are not reported in governmental funds.

c. includes financial assets and related liabilities.

d. has its operating activities measured and reported in terms of revenues and expenses, but the timing of expense recognition differs from that in similar business organizations.