GASB Standards Require That General Capital Assets Be Recorded in the Government-Wide

question 31

Multiple Choice

GASB standards require that general capital assets be recorded in the government-wide statements at:

• A) Historical cost.
• B) Fair value at the financial statement date.
• C) Estimated cost at the financial statement date.
• D) None of the options are correct.

---

Definitions:

Cash Customers

Consumers who pay for goods or services with cash at the time of purchase, rather than using credit.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Receivables Period

The amount of time it typically takes for a business to collect payments owed by its customers after selling its goods or services on credit.

Types of Inventory

Refers to the classifications of inventory that businesses maintain, including raw materials, work-in-progress, and finished goods.