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NFP - Test 2 - Ch 7 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Which of the following would be least likely to be classified as city's general capital assets?
a. Roads & Bridges
b. Electric Utility Lines
c. Computers used by the police department
d. Computers used by the department that collects the city's sales tax, which is dedicated to
debt service on general obligation bonds - Answer✔b. Electric Utility Lines
A city should not report on its general fund balance sheet an office building constructed over
100 years ago because - Answer✔The measurement focus of the general fund is on current
financial resources and the building is not a current financial resource.
Which of the following costs should not be capitalized and reported on a city's government-
wide statement of net assets?
a. Payments to a city artist to design a new city logo
b. Computer software that the city purchased from outsiders?
c. Paintings acquired for display in the city's art museum
1|P a g e
NFP - Test 2 - Ch 7 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Which of the following would be least likely to be classified as city's general capital assets?
a. Roads & Bridges
b. Electric Utility Lines
c. Computers used by the police department
d. Computers used by the department that collects the city's sales tax, which is dedicated to
debt service on general obligation bonds - Answer✔b. Electric Utility Lines
A city should not report on its general fund balance sheet an office building constructed over
100 years ago because - Answer✔The measurement focus of the general fund is on current
financial resources and the building is not a current financial resource.
Which of the following costs should not be capitalized and reported on a city's government-
wide statement of net assets?
a. Payments to a city artist to design a new city logo
b. Computer software that the city purchased from outsiders?
c. Paintings acquired for display in the city's art museum
1|P a g e
