In Which of the Following Would It Not Be Appropriate

question 12

Multiple Choice

In which of the following would it not be appropriate to record depreciation of capital assets?

• A) Capital projects fund.
• B) Internal service fund.
• C) Business-type activities.
• D) Governmental activities.

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Definitions:

Business Combination

The process of bringing two or more separate companies together under common control or ownership.

Negative Goodwill

Occurs when the purchase price of a company is less than the fair value of its net assets, often reflecting a bargain purchase.

Acquisition Method

An accounting approach used to consolidate the financial statements of two companies when one acquires control over the other.

Unrealized Gain

An increase in the value of an asset that has not been sold, reflecting a potential profit that is not yet realized.