What does the carrying value of tangible capital assets represent to government?
A)Source of future cash flows from the capital assets.
B)Unexpired service potential of the capital assets.
C)Tax value of the capital assets.
D)Acquisition cost of Crown assets.

Question

Quizplus · Accepted Answer

The carrying value of tangible capital assets represents the unexpired service potential of the capital assets, which means the remaining value of the assets that can be used to generate economic benefits in the future. It reflects the cost of the assets that have not yet been consumed and still have a useful life. A represents future cash flows, C represents tax value, and D represents acquisition cost, which do not fully capture the value that the assets can still provide.

What Does the Carrying Value of Tangible Capital Assets Represent