Which of the Following Statements Is True Concerning Intragovernmental Transfers

question 34

Multiple Choice

Which of the following statements is true concerning intragovernmental transfers of capital assets?

• A) If a proprietary fund is donating a capital asset to a general government department, the proprietary fund will debit capital contribution for the net book value of the donated capital asset.
• B) If a proprietary fund donates a capital asset to a general government department, it will be reported as a nonoperating expense in the proprietary fund but as a transfer between activities at the government-wide level.
• C) If a general government department donates a capital asset to an Enterprise Fund, the General Fund will debit transfer out for the net book value of the donated asset.
• D) If a general government department donates a capital asset to an Enterprise Fund, the General Fund will debit capital contribution for the original cost of the capital asset.

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Definitions:

Punishment

A process by which a behavior is followed by a consequence that decreases the likelihood of the behavior's occurrence in the future.

Prisoner's Dilemma

A standard example of a game analyzed in game theory that shows why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Nash Equilibrium

A state in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Competitor's Intentions

The strategic plans and actions that a business's rivals aim to undertake to gain a competitive advantage.