Effective Capital Budgeting for General Capital Assets of a Government

question 51

Multiple Choice

Effective capital budgeting for general capital assets of a government requires:

• A) Intermediate and long-range capital improvement plans for general capital assets.
• B) Nonfinancial information on physical measures and service condition of capital assets of component units.
• C) Consideration of how proprietary fund capital projects will be financed.
• D) Information about the capital asset needs of a motor pool accounted for as an internal service fund.

---

Definitions:

Refunding Decision

The process of replacing an existing debt with a new one, typically with better terms, in order to reduce financing costs.

Canadian Securities Industry

The sector encompassing firms and regulations in Canada involved in issuing, trading, and managing securities and investments.

Unregulated

Lacking regulatory restrictions within a particular industry or activity.

Best Efforts Basis

A commitment to perform a task to the best of one's ability, often used in financial transactions to indicate that an underwriter or other party will endeavor to sell as much of an offering as possible without guarantees.