Which of the Following Is Not a Requirement That Must

question 22

Multiple Choice

Which of the following is not a requirement that must be met to elect the "modified approach" to reporting certain eligible infrastructure assets?

• A) The government gets the permission of the Government Accounting Standards Board.
• B) The government documents that the eligible infrastructure assets are being preserved approximately at (or above) the condition level established and disclosed.
• C) The government manages the assets using an asset management system that includes condition assessments of the assets and summary of results using a measurement scale.
• D) The government manages the assets using an asset management system that includes estimates each year of the annual amount needed to maintain and preserve the eligible assets at the condition level established and disclosed by the government.

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Definitions:

Short-Term Creditors

Entities or individuals who have provided financial credit to a company with the expectation of being repaid within a short period, usually within a year.

Comparative Financial Statements

Financial statements that present the financial position, results of operations, and cash flows of an entity for multiple periods side-by-side for comparison.

Financial Statements

Financial statements are comprehensive reports created to provide insights into a company's financial performance, position, cash flows, and changes in equity over a specific period, typically including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Vertical Analysis

A financial analysis technique that presents each item in a financial statement as a percentage of a base figure.