Which of the Following Is True Concerning Infrastructure Assets

question 139

Multiple Choice

Which of the following is true concerning infrastructure assets?

• A) Capitalization of infrastructure is optional
• B) Capitalization of infrastructure is required
• C) Governments must depreciate infrastructure assets
• D) Governments rarely possess infrastructure

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Definitions:

Unearned Interest: Leases

Interest that has been collected on a lease but not yet earned, often related to the financing element of leases.

Present Value Factors

Financial multipliers used to calculate the present value of a future amount of money or stream of cash flows based on a specific discount rate.

Interest Revenue

Income earned on investments, loans, or accounts receivable that is generated from the interest charged.

Annual Return

The percentage of increase or decrease in the value of an investment over a one-year period, including dividends and appreciation.