Costs of general capital assets


Problem: In the recording of costs of general capital assets, a certain city finance officer instructed the staff:

a) To ignore items costing under $5,000.

b) To ignore all special assessment costs for street paving, curbs, gutters, and sidewalks.

c) To ignore all assets acquired under lease agreements.

For each of the three practices listed above, state whether you believe the practice is in conformity with generally accepted accounting principles. Defend your answers.

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Finance Basics: Costs of general capital assets
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