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

question 107

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,$30 million was restricted for debt service and other purposes.The government's unrestricted net assets would be reported as:

• A) $80 million.
• B) $50 million.
• C) $40 million.
• D) $30 million.

---

Definitions:

Net Advantage To Leasing

The benefits a company realizes from leasing assets rather than purchasing them, considering cost savings, tax advantages, and flexibility.

Estimated Life

The expected duration or lifespan of an asset, affecting depreciation calculations and investment decisions.

CCA Class

Capital Cost Allowance Class; categories used in Canadian income tax that determine the depreciation rate for different types of assets for tax purposes.

Net Advantage To Leasing

The financial benefit that results when leasing an asset is more cost-effective than purchasing the asset outright.