Chapter 5 Vocab

Question 1

The price that would be paid to acquire an asset with equivalent service potential in a market transaction at the acquisition date.

Answer 1

Acquisition Value

Question 2

A significant, unexpected decline in the service utility of a capital asset (q.v.).

Answer 2

Asset Impairment

Question 3

Short term interest bearing notes issued by a government in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are related. See also Interim Borrowing.

Answer 3

Bond Anticipation Notes (BANs)

Question 4

Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.

Answer 4

Capital Projects Fund

Question 5

Those capital assets of a government that are not recognized by a proprietary or fiduciary fund.

Answer 5

General Capital Assets (GCA)

Question 6

The amount paid or liability incurred by an accounting entity to acquire an asset and make it ready to render the services for which it was acquired.

Answer 6

Historical Cost

Question 7

Roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems installed for the common good. See also Improvements.

Answer 7

Infrastructure Assets

Question 8

Capital assets that lack physical substance, have a useful life of more than one reporting period, and are nonfinancial in nature.

Answer 8

Intangible Assets

Question 9

An approach that allows the government to elect not to depreciate certain eligible infrastructure assets provided certain requirements are met.

Answer 9

Modified Approach

Question 10

An arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a “facility”) in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties.

Answer 10

Service Concession Arrangements (SCA)

Question 11

A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service that is presumed to be a general benefit to the public and of special benefit to such properties.

Answer 11

Special Assessment