What Must a Government Do to Avoid Depreciating Its Infrastructure

question 39

Multiple Choice

What must a government do to avoid depreciating its infrastructure assets and still meet the GASB's financial reporting standards?

• A)have an asset management system and document that its assets are being preserved at a condition level that it establishes and discloses
• B)estimate the dollar amount of its infrastructure assets and report that amount in the government-wide statement of net position
• C)leave the dollar value of its infrastructure assets off both the government-wide statement of net position and the governmental fund balance sheet
• D)take a compete inventory of its infrastructure assets every year

---

Definitions:

Annual Return

The percentage change in an investment's value over a year, including dividends and appreciation.

Investment

Assets purchased with the expectation that they will generate income in the future or appreciate in value.

Semiannually

Occurring twice a year, typically every six months.

Annual Return

This measures the financial gain or loss of an investment over a one-year period, expressed as a percentage of the investment's initial cost.