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    PracticeCPA®CPA BAR Practice Exam 4Question 49
    Easy1 markMultiple Choice
    Area III: State & Local GovernmentsBARArea IIIGASB

    CPA · Question 49 · Area III: State & Local Governments

    In the Government-Wide Statement of Net Position, which component of net position includes capital assets net of accumulated depreciation and related debt?

    Answer options:

    A.

    Restricted Net Position

    B.

    Net Investment in Capital Assets

    C.

    Unrestricted Net Position

    D.

    Designated Net Position

    How to approach this question

    Net Position has 3 buckets: Net Investment in Capital Assets, Restricted, Unrestricted.

    Full Answer

    B.Net Investment in Capital Assets✓ Correct
    B
    Net Investment in Capital Assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

    Common mistakes

    Confusing with Restricted Net Position.
    Question 48All questionsQuestion 50

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