Which of the Following Is not True Regarding Infrastructure Assets

question 26

Multiple Choice

Which of the following is not true regarding infrastructure assets?

• A) Governments can record depreciation in the same manner as for other depreciable fixed assets.
• B) Because they have such long useful lives, infrastructure assets are never depreciated.
• C) Governments can choose to expense expenditures that extend the life of infrastructure assets in lieu of depreciation.
• D) Expenditures to add to or improve infrastructure assets must be capitalized.

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Definitions:

Security Interest

A legal right or claim on assets granted to a creditor to secure the repayment of a debt or obligation.

Perfection

The process of securing a security interest against third parties, especially in relation to secured transactions.

Secured Party

A lender or seller who holds a security interest.

Mortgagor

The borrower in a mortgage agreement who pledges property to the lender as security for the loan.