Capital Assets Used by Governmental Funds Should Be Reported In

question 48

Multiple Choice

Capital assets used by governmental funds should be reported in:

• A) The appropriate governmental funds.
• B) The property, plant, and equipment fund.
• C) Departmental memorandum records.
• D) The governmental activities column of the government-wide statements.

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Definitions:

Expected-Rate-Of-Return

The anticipated return on an investment, predicting future profit or loss.

Interest-Rate Cost-Of-Funds

The cost incurred by a financial institution to acquire the funds that it lends out to its customers, which is often influenced by prevailing market interest rates.

Marginal Cost

The rise in cost due to the production of an extra unit of a product or service.

Marginal Benefit

Marginal benefit refers to the extra benefit received from the consumption or use of an additional unit of a good or service.