When Using the Modified Approach to Account for Infrastructures,expenditures to Extend

question 112

True/False

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are capitalized.

---

Definitions:

Promissory Note

A written, legally binding promise to pay a specific sum of money at a specified time to a person or entity.

Negotiable Instrument

A signed writing that contains an unconditional promise or order to pay an exact sum of money, on demand or at an exact future time, to a specific person or order, or to bearer.

Student Loan

A type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books, and living expenses.

Credit

A financial term describing the ability of a borrower to receive goods or services before payment, based on the trust that payment will be made in the future.