Capital Assets Used by Governmental Funds Should Be Reported In

question 48

Multiple Choice

Capital assets used by governmental funds should be reported in:

• A) The appropriate governmental funds.
• B) The property, plant, and equipment fund.
• C) Departmental memorandum records.
• D) The governmental activities column of the government-wide statements.

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Definitions:

Fair Value Method

An accounting approach that assesses and assigns a price to a company's assets and liabilities based on current market value.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan on the basis on an effective interest rate rather than the nominal rate.

Cash Interest

Interest payments made in cash to creditors or bondholders during a specific period.