What Do the Total Tangible Capital Assets Indicate on a Government's

question 17

Multiple Choice

What do the total tangible capital assets indicate on a government's statement of financial position?

• A)How much revenue the government must raise to cover its past spending.
• B)The government's financial position.
• C)The government's ability to raise revenues to meet its current year expenditures.
• D)The government's ability to provide future services and programs.

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Definitions:

Cost with Amortization Method

The spreading of the cost of an intangible asset over its useful life, affecting financial statements through periodic charges.

Unrealized Gain

The potential profit that exists on paper resulting from an investment that has not yet been sold for cash.

Fair Value Adjustment

A process of adjusting the book value of an asset or liability to reflect its current market value.

Available-for-Sale

A category of securities that are not classified as held-to-maturity or trading securities, and are recorded at fair value.