Which of the following should NOT be reported in the noncapital financing activities category?

In the context of governmental accounting and reporting, noncapital financing activities typically include transactions related to the financing of an entity's activities that do not involve the acquisition of capital assets. This category often encompasses grants, other governmental transfers, and any federal or state funding that is not tied to capital projects.

The choice that should not be reported in the noncapital financing activities category is the grant payments involving grants restricted to capital purposes. This is because grant payments tied specifically to capital purposes are expected to be reported under capital financing activities, as they relate to the acquisition of long-term assets.

In contrast, grant receipts and payments that are not restricted to capital purposes can be reported within noncapital financing activities since they support operational functions of the entity and do not pertain to capital asset acquisition. Consequently, it is appropriate to classify both grant receipts and payments not restricted to capital purposes under noncapital financing activities, thus validating the reasoning behind this classification in the framework of financial reporting.