In the Net Position Component Called "Invested in Capital Assets,net

question 20

Multiple Choice

In the net position component called "invested in capital assets,net of related debt" (that appears in proprietary fund financial statements) ,what is the meaning of net of related debt?

• A)bonds,notes,or other borrowings originally issued to acquire or improve the capital assets shown in the amount invested in capital assets
• B)outstanding balances of bonds,notes,or other borrowings,issued for any purpose approved by the governing body
• C)outstanding balances of all liabilities,regardless of their form,issued to acquire or improve the capital assets shown in the amount invested in capital assets
• D)outstanding balances of bonds,notes,or other borrowings,issued to acquire or improve the capital assets shown in the amount invested in capital assets

Understand the purpose of a trial balance and how it is used to detect errors.

Recognize differences and similarities between IFRS and GAAP in accounting practices.

Understand the concept and application of double-entry accounting worldwide.

Know the proper treatment of business transactions (increases and decreases) in the double-entry system.

---

Definitions:

Truth Tables

Truth tables are logical tools used to systematically explore the possible truth values of propositions depending on the truth values of their components.

Contradictory

Relates to two statements that cannot both be true at the same time, indicating a relationship where the truth of one necessitates the falsity of the other.

Symbolic Form

the representation of objects, concepts, or actions by symbols to facilitate understanding or communication.

Components

Basic elements or parts that make up a system or device.