What do the total tangible capital assets indicate on a government's statement of financial position?
A)How much revenue the government must raise to cover its past spending.
B)The government's financial position.
C)The government's ability to raise revenues to meet its current year expenditures.
D)The government's ability to provide future services and programs.

Question

Quizplus · Accepted Answer

The total tangible capital assets on a government's statement of financial position indicate the government's ability to provide future services and programs, as these assets are resources that can be used towards fulfilling those obligations. This information is important for both internal decision-making and for external stakeholders who are interested in assessing the government's long-term financial sustainability.

What Do the Total Tangible Capital Assets Indicate on a Government's