Which of the Following Statements Regarding Capital Assets Is Not

question 25

Multiple Choice

Which of the following statements regarding capital assets is not True?

• A) Proprietary funds routinely account for capital assets used in their operations within the fund financial statements.
• B) Fiduciary funds do not account for property, plant, and equipment within the fund financial statements.
• C) Because governmental funds account only for current financial resources, these funds do not record capital assets acquired by the funds.
• D) General capital assets purchased or constructed with governmental fund resources are recorded in the governmental activities general ledger at the government-wide level.

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Definitions:

Final Cash Flow

Final Cash Flow is the last cash inflow or outflow in a series of transactions, often associated with the termination or exit of an investment.

New Product Design

The process of creating a new product to be sold by a business to its customers.

Accounts Receivable

Financial obligations of customers towards a company for delivered but unpaid goods or services.