With Regard to Capitalization of Infrastructure, Which of the Following

question 15

Multiple Choice

With regard to capitalization of infrastructure, which of the following is true?

• A)All infrastructure must be capitalized on the financial statement before GASB Statement No.34 can be implemented.
• B)Only large governments must capitalize all infrastructure on the date they implement GASB Statement No.34.
• C)Small and medium size governments may elect to delay capitalization of infrastructure.
• D)Small governments may omit capitalizing all infrastructure acquired before the date on which they implement GASB Statement No.34.

---

Definitions:

Decrease In Assets

A reduction in the value or amount of the assets owned by a company or individual.

Credit Balance

The amount of money that a company or individual has in their account, reflecting credits that exceed debits.

Salary Expense

This is the total amount paid to employees for services rendered during a specific period, typically reflecting wages or salaries before deductions.

Normal Credit Balance

The typical balance on the credit side of an account, as is the case for liabilities, equity, and revenue accounts.