The Modified Approach to Accounting for Infrastructure Assets May Be

question 15

Multiple Choice

The modified approach to accounting for infrastructure assets may be utilized by a state or local government if:
i.The government accumulates information about all infrastructure assets within either a network or subsystem of a network.
ii.The government capitalizes infrastructure assets.
iii.The government expenses costs of maintaining the infrastructure assets.
iv.The government chooses to depreciate its infrastructure assets.

• A)i and ii.
• B)i,ii,and iv.
• C)ii and iii.
• D)i,ii,and iii.
• E)i,ii,iii,and iv.

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Definitions:

TC

Total Cost, which is the total expense incurred in reaching a particular level of output.

Profit-Maximizing

The act of adjusting production and sales to achieve the highest possible profit under given market conditions.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.

Profit

The financial gain made in a transaction or business operation, calculated as the difference between revenue and costs.