The Fixed Asset System Is Similar to the Expenditure Cycle

question 90

Multiple Choice

The Fixed Asset System is similar to the expenditure cycle except

• A) fixed asset transactions are non-routine and require special authorization and controls
• B) fixed assets are capitalized, not expensed
• C) both a and b
• D) none of the above

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur it, often associated with the consumption or production of goods and services.

Price

The sum required, expected, or disbursed as a purchase price for an item.

Government-Provided Goods

Goods and services offered to the public by the government that might not be provided by the market or would be underprovided, such as public parks and national defense.

Explicit Fee

A clear and defined charge for a service or product that is not hidden or implicit.