Unformatted text preview: government, and (2) the government documents that the eligible infrastructure assets are being preserved approximately at (or above) the condition level established and disclosed. Under this approach, if the government fails to maintain the assets at or above the established and disclosed condition level, it must revert to reporting depreciation for its infrastructure assets and discontinue its use of the modified approach. 5-6. It is recommended that a capital projects fund be created if money received from financing sources is restricted to the purchase or construction of specified capital assets. When deemed useful, capital projects funds may also be used to account for the acquisition of major general capital assets, such as buildings, under a capital lease agreement. Exercises & Problems 5-2. Multiple Choice. 1. A 2. D 3. C 4. A 5. B 6. C 7. D 8. C 9. A 10. C...
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This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.
- Spring '11