The Following Key Terms from Chapter 5 Relate to General

question 78

Short Answer

The following key terms from Chapter 5 relate to general capital assets and capital projects:
A)Bond anticipation notes
B)Infrastructure assets
C)Service Concession Arrangements
D)General capital assets
E)Capital projects funds
F)Asset impairment
G)Capital leases
H)Operating leases
I) Depreciation
For each of the following definitions,indicate the key term from the list above that best matches the definition by placing the appropriate letter in the blank space next to the definition.
_____ 1. A rental-type lease in which the risks and benefits of ownership are primarily those of the lessor
_____ 2. Short-term interest-bearing instruments issued by a government with a plan to replace with longer-term debt
_____ 3. Roads,bridges,curbs and gutters,streets,sidewalks,and drainage systems installed for the common good
_____ 4. Capital assets of a government that are not recorded in a proprietary or fiduciary fund
_____ 5. Significant,unexpected decline in the service utility of a capital asset

• A)Bond anticipation notes
• B)Infrastructure assets
• C)Service Concession Arrangements
• D)General capital assets
• E)Capital projects funds
• F)Asset impairment
• G)Capital leases
• H)Operating leases
• I) Depreciation
• For each of the following definitions,indicate the key term from the list above that best matches the definition by placing the appropriate letter in the blank space next to the definition.
• _____ 1. A rental-type lease in which the risks and benefits of ownership are primarily those of the lessor
• _____ 2. Short-term interest-bearing instruments issued by a government with a plan to replace with longer-term debt
• _____ 3. Roads,bridges,curbs and gutters,streets,sidewalks,and drainage systems installed for the common good
• _____ 4. Capital assets of a government that are not recorded in a proprietary or fiduciary fund
• _____ 5. Significant,unexpected decline in the service utility of a capital asset

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Definitions:

Patent

A form of intellectual property right that grants the patent holder exclusive rights to an invention for a certain time period, preventing others from making, using, selling, or distributing the patented invention without permission.

Significant Influence

A level of control in an investment, usually signifying the ability to participate in financial and operating policy decisions of the investee without having full control.

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's net profits or losses.