ExpertEasy1 markMultiple Choice
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?
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
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.
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