Which statement is true regarding transfers of capital assets in government-wide financial statements?

In government-wide financial statements, the handling of capital assets and transfers is influenced by the specific reporting requirements and the nature of the accounting focus.

The statement regarding capital contributions being reported in fund financial statements is true because certain capital contributions are recognized in the fund financial statements, particularly in proprietary and fiduciary funds, where capital contributions can legitimately increase the net assets of these funds.

It is also accurate that no transfer would be reported in governmental fund financial statements. Governmental funds typically use the current financial resources measurement focus and modified accrual basis of accounting, which doesn't allow for the recognition of capital asset transfers as they don’t affect the flow of current financial resources.

Additionally, differences in measurement focus certainly can arise between government-wide statements, which use the economic resources measurement focus and full accrual accounting, and governmental fund statements, which do not. This distinction leads to different reporting and recognition for transfers of capital assets and affects how these transactions are recorded and presented.

Therefore, all these statements collectively contribute to understanding the nuances of capital asset transfers in government-wide financial statements, making the answer encompassing as it reflects the multifaceted nature of governmental accounting.