With Regard to Accounting for Infrastructure, Which of the Following

question 22

Multiple Choice

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

• A) Unlike other capitalized assets, infrastructure assets should never be depreciated.
• B) The costs of general government infrastructure assets should be recognized as expenditures in governmental fund statements as the costs are incurred.
• C) Governments that choose to apply the modified approach to accounting for infrastructure need not capitalize infrastructure assets.
• D) Under the modified approach, governments should capitalize both the initial costs of infrastructure assets and subsequent outlays intended to preserve and extend the assets' useful lives.

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Definitions:

Ratification

The official way to confirm something, usually by vote, such as the formal validation of a proposed law or the approval of a constitutional amendment.

Political Action Committees

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