18) Which of the following best describes a primary government? (3pts) Although a primary government has a separately elected governing body, it may not be a legally separate entity. A primary government, although legally separate, may be fiscally dependent upon another governmental entity. O A primary government must be both legally separate and fiscally independent. The only requirement is for a primary government to have a separately elected governing body, it does not have to be either legally separate or fiscally independent. 19) Which of the following statements is false regarding the depreciation of capital assets? (3pts) O Any rational and systematic manner of depreciation can be used. Governments are not allowed to group similar assets and to depreciate them as a group using the same depreciation rate. Infrastructure assets (like a road or lighting system), are not required to be depreciated under certain circumstances. Should the municipality incur liabilities that relate specifically to the acquisition, construction, or improvement of capital assets, those assets should be reported net of the related debt. 20) Which of the following best describes the presentation of restricted and unrestricted net position? (3pts) O See Net position should be reported as unrestricted when governments are not free to use the asset as they wish. O Restrictions on the use of net position may be imposed by loan covenants, donor restrictions, laws or regulations, constitutional provisions or enabling legislation. Even though the net position may be labeled as restricted, it may be available to meet the ongoing financial needs of the government. O Unrestricted net position is not available to meet the needs of the general operations of the government