In Its Government-Wide Statement of Net Assets,a Government Reported Assets

question 86

Multiple Choice

In its government-wide Statement of Net Assets,a government reported assets of $155 million,including $50 million in capital assets (net of depreciation) ,and liabilities of $80 million,including long-term debt of $60 million,$40 million of which was issued to acquire capital assets.In addition,$30 million was restricted for debt service and other purposes.The government's unrestricted net assets would be reported as:

• A) $85 million.
• B) $55 million.
• C) $45 million.
• D) $35 million.

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Definitions:

Expected Growth Rate

The annual rate at which an investment, company revenue, or economy is expected to grow over a future period.

Rate of Return

The achievement or shortfall in value of an investment during an established time, shown as a percentage of the investment’s original financial input.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.

ROE

Return on Equity (ROE) is a financial ratio that measures a company's ability to generate profits from its shareholders' equity.