In Its Government-Wide Statement of Net Assets, a Government Reported

question 1

Multiple Choice

In its government-wide Statement of Net Assets, a government reported assets of $150 million, including $50 million in capital assets (net of depreciation) and liabilities of $80 million, including long-term debt of $60 million, $40 million of which was issued to acquire capital assets. In addition, $25 million was restricted for debt service and other purposes. The government's unrestricted net assets would be reported as:

• A) $35 million
• B) $45 million
• C) $55 million
• D) $90 million

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Definitions:

Trend

A general direction in which something is developing or changing, often analyzed in data over time.

Net Operating Income

A financial metric that measures a company’s profitability from its core business operations, excluding non-operating income and expenses.

Income Before Taxes

The profit a company generates from its operations before tax obligations are deducted.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.