Which of the following would be a reconciling item on the statement of change in net debt?
A)Adding back the cost of tangible capital assets
B)Adding back the cost of debt servicing
C)Adding back the amortization expense
D)Adding back transfer payments to other governments

Question

Quizplus · Accepted Answer

Amortization expense represents the non-cash component of the repayment of debt, which means it is a reconciling item on the statement of change in net debt. Adding back the other items simply adjusts the net debt figure without providing insight into the sources of the change.

Which of the Following Would Be a Reconciling Item on the Statement