Which of the following is NOT a method of classification in governmental accounting?

In governmental accounting, the classification of expenditures is essential for understanding how funds are allocated and spent. The correct answer identifies "Capital classification" as not being a recognized method of classification in this context.

Functional classification, character classification, and organizational unit classification are all legitimate methods of categorizing expenditures.

Functional classification organizes expenditures based on the purpose of spending, such as education, health services, or public safety. This method helps in analyzing how resources are allocated to different functions of government.

Character classification focuses on the nature of the expenditure, such as whether it is a capital outlay, operating expense, or debt service. This helps in budgeting and financial reporting by distinguishing between different types of financial activities.

Organizational unit classification groups expenditures according to the department or entity responsible for them. This provides a clear view of spending patterns within different sections of a governmental entity.

On the other hand, "Capital classification" is less commonly used in this form and may refer more specifically to the categorization of assets rather than a standardized method of classifying expenditures within governmental accounting. Thus, it does not align with the primary classification methods recognized in this field.