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:

Internal Control Principles

Guidelines meant to safeguard assets, ensure financial report accuracy, and promote operational efficiency.

Establishment Of Responsibility

An internal control principle focusing on assigning responsibility to specific employees to prevent fraud and errors.

Segregation Of Duties

An internal control measure that splits responsibilities among different people to reduce the risk of fraud and errors in the financial processes.

Credit Memorandum

A document issued by a supplier to a buyer, reducing the amount the buyer owes to the supplier, often due to a return or refund.