Which of the following would be least likely to be classified as a city's general capital assets?

Roads and bridges

Electric utility lines

Computers used by the police department

Computers used by the department that collects the city's sale tax, which is dedicated to debt service on general obligation bonds

A city should not report on its general-fund balance sheet an office building constructed over 100 years ago because

The building would likely be fully depreciated.

It would be too difficult to determine the historical cost of the building as measured in current dollars.

The measurement focus of the general fund is on current financial resources and the building is not a current financial resource.

The building would be considered an infrastructure asset, and infrastructure assets are excluded from governmental funds.

Which of the following costs should not be capitalized and reported on a city's government-wide statement of net position?

Payments to a city artist to design a new city logo

Computer software that the city purchased from outsiders

Paintings acquired for display in the city's art museum

Legal fees incurred in acquiring land to be used for a city park

Which of the following collectibles need not be capitalized and reported on a city's government-wide statement of net position?

A statue donated to the city, which it intends to sell and use the proceeds from the sale to fund a children's art center

A series of books that the city intends to place in its library's general circulation collection

An abstract painting that the city purchased to decorate the mayor's office

An early twentieth-century impressionist painting that the city's art museum purchased for its permanent collection

Per GASB Statement No. 34, roads and bridges should be capitalized and reported as assets on

Both a government-wide statement net of assets and a general fund balance sheet

Neither a government-wide statement of net position nor a general fund balance sheet

A government-wide statement of net position but not a general fund balance sheet

A general fund balance sheet but not a government-wide statement of net position

Which of the following conditions does a government not have to satisfy to use the modified approach to reporting infrastructure assets?

It must assess the condition of its infrastructure at least once every three years.

It must estimate the annual amount necessary to preserve the assets at a specified condition level.

It must document that the assets are, in fact, being preserved at or above the specified condition level.

It must use the modified approach for all its infrastructure assets.

Per the modified approach, a government need not

Capitalize infrastructure assets

Depreciate infrastructure assets

Report in its fund statements expenditures to acquire or construct infrastructure assets

Record maintenance costs as expenditures

A government constructed a bridge 20 years ago at a cost of $30 million. The replacement cost of the bridge today would be $90 million. The bridge has a useful life of 60 years. In its government-wide statements the government should record the bridge at a value, net of accumulated depreciation, of

$20 million

$60 million

$90 million

$0

Per GASB Statement No. 34, deferred maintenance costs

Must be estimated and reported in notes to the financial statements

Must be reported in the government-wide statement of net position but not in fund statements

Must be estimated and reported in the management's discussion and analysis

Need not be explicitly measured or reported when capital assets are depreciated

A city would probably not have to recognize an impairment loss on its hospital building if

It were severely damaged in a fire

It will likely be used to serve far fewer patients than expected when acquired

Its market value declines significantly

It will be transformed into a warehouse