Which Statement Is False Regarding the Government-Wide Statement of Net

question 13

Multiple Choice

Which statement is false regarding the government-wide Statement of Net Position?

• A) Noncurrent liabilities are presented separately from current liabilities.
• B) Assets are reported excluding capital assets.
• C) Capital assets are reported net of depreciation.
• D) Investments are reported at fair value rather than historical cost.
• E) Discretely presented component units are grouped and shown on the right of the total.

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Definitions:

Profitability Index

A financial metric comparing the present value of future cash flows generated by a project to its initial investment cost, used in capital budgeting.

Investment Projects

Initiatives undertaken by a business or organization to invest in assets or resources with the expectation of generating future profit.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Lease Payments

Regular payments made for the use of an asset or property under a lease agreement.