A Method of Depreciation for Infrastructure Assets That Allows the Expensing

question 43

Multiple Choice

A method of depreciation for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called

• A) Government-wide depreciation.
• B) Proprietary depreciation.
• C) GASB depreciation.
• D) Modified approach.
• E) Alternative depreciation.

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Definitions:

Purchase Of Equipment

The acquisition of equipment that a business requires for its operations, treated as a capital expenditure.

Investing Activities

Transactions and events that involve the purchase and sale of long-term assets and other investments, not directly related to the entity's normal line of business.

Long-Term Note

A debt security that matures in more than one year, requiring the borrower to repay the principal and interest over an extended period.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an organization, such as issuing stocks or bonds, and repaying bank loans.