In Addition to a Capital Asset in the Government-Wide Statement

question 60

Multiple Choice

In addition to a capital asset in the government-wide Statement of Net Assets, how would the construction costs of $2,950,000 be reported at year-end?

• A) As an expenditure of the capital projects fund only
• B) As a capital asset in the Statement of Net Assets only
• C) As an expenditure of the capital projects fund and a capital asset in the government-wide Statement of Net Assets
• D) As an expenditure of the capital projects fund and an expense in the Statement of Activities

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Definitions:

Decorative Merchandise

Items intended primarily to adorn or beautify a space, rather than serve a functional purpose.

Computer-operated Pump Meter

A device controlled by a computer that measures the flow of liquids or gases through a pump, often used for accuracy in dispensing fuels or chemicals.

Cash Discount

A reduction in the price paid for goods or services that is offered to customers who pay in cash rather than using credit.

Net Profit

The amount of money remaining after all operating expenses, taxes, and interest are deducted from total revenue.