A Government That Uses the Modified Approach to Account for Qualifying

question 45

Multiple Choice

A government that uses the modified approach to account for qualifying assets should report all infrastructure asset related costs for the year as

• A) Expenses.
• B) Assets.
• C) Expenses, unless they were additions or qualitative improvements.
• D) Assets unless incurred in disposing of an infrastructure asset.

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Definitions:

Panicky Withdrawal

A sudden, widespread rush by investors or depositors to withdraw funds from a bank, financial institution, or investment, usually due to fears of insolvency.

Federal Reserve Notes

Paper currency issued by the United States Federal Reserve System, serving as the most common form of U.S. paper money.

Standard of Value

A recognized measure that is used to set the price of goods and services in terms of a currency, facilitating trade and economic comparison.

Fiat Money

Legal tender authorized by governmental entities, which is not underpinned by any material goods.