Discuss AGA CGFM Exam Topic 3 Question 61

A capital asset transferred to another department within the same government should be

Arecorded with the original department to maximize receipts.

Brecorded with the second department to minimize costs.

Cretained in the government's fixed asset tracking system with no change in book value to either department.

Dretained in the government's fixed asset tracking system showing the book value of the asset transferred to the receiving department.

Suggested Answer: D

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38 comments · newest first

Lemuel 10 months ago

I thought assets had to be revalued when transferred. Is that not the case?

Staci 10 months ago

Wait, why wouldn't the second department just take it? Seems odd.

Clarence 10 months ago

Recording it with the second department could really help minimize costs!

Renea 10 months ago

Totally agree, keeping it with the original department makes sense!

Eura 11 months ago

A capital asset should stay on the books of the original department.

Martina 11 months ago

I lean towards option D because it seems logical to show the book value transferred, but I’m a bit confused about the implications for the receiving department.

Arlie 11 months ago

I feel like option C makes sense since it keeps the book value consistent, but I can't recall if that's the standard practice.

Roselle 11 months ago

I remember a practice question where we had to decide how to record interdepartmental transfers, and I think it was about minimizing costs.

Madelyn 11 months ago

I think the asset should stay with the original department to keep things simple, but I'm not sure if that's the best approach.

Silvana 12 months ago

Okay, let me walk through this step-by-step. The key is to consider how the transfer should be recorded to ensure the government's fixed asset records are accurate and complete.

Larae 12 months ago

I've seen questions like this before, so I'm feeling confident. I think option D is the correct answer, as it maintains the proper tracking of the asset's book value.

Corrie 1 year ago

Hmm, this is a tricky one. I'll need to carefully review the options and think through the implications for the government's accounting.

Kimbery 1 year ago

This question seems straightforward, but I want to make sure I understand the key details before selecting an answer.

Winifred 1 year ago

Option F: Flip a coin. Accounting is hard, let's just wing it!

Gracie 1 year ago

↳ replying to Winifred

B) recorded with the second department to minimize costs.

Jesse 1 year ago

↳ replying to Winifred

A) recorded with the original department to maximize receipts.

Flo 1 year ago

↳ replying to Winifred

D) retained in the government's fixed asset tracking system showing the book value of the asset transferred to the receiving department.

Donette 1 year ago

↳ replying to Winifred

C) retained in the government's fixed asset tracking system with no change in book value to either department.

Lettie 1 year ago

Option E: Sell the asset to the highest bidder and split the proceeds. Who needs bureaucracy when you can make a quick buck?

Raymon 1 year ago

↳ replying to Lettie

Option E: Sell the asset to the highest bidder and split the proceeds.

Raymon 1 year ago

↳ replying to Lettie

D) retained in the government's fixed asset tracking system showing the book value of the asset transferred to the receiving department.

Raymon 1 year ago

↳ replying to Lettie

C) retained in the government's fixed asset tracking system with no change in book value to either department.

Mickie 1 year ago

Option A? Really? Why would we want to maximize receipts for an internal transfer? That doesn't make much sense.

Leila 1 year ago

↳ replying to Mickie

I agree, maximizing receipts for an internal transfer doesn't seem necessary.

Dong 1 year ago

↳ replying to Mickie

C) retained in the government's fixed asset tracking system with no change in book value to either department.

Nadine 1 year ago

↳ replying to Mickie

A) recorded with the original department to maximize receipts.

Josefa 1 year ago

Hmm, I'm torn between B and D. I guess it depends on whether we want to minimize costs or have a clear record of the transfer.

Jesusa 1 year ago

↳ replying to Josefa

Yeah, I see your point. Let's go with option D then.

Aimee 1 year ago

↳ replying to Josefa

That's a good point, it would provide a clear record of the transfer.

Kristin 1 year ago

↳ replying to Josefa

But wouldn't it be better to retain it in the fixed asset tracking system with the book value of the asset transferred?

Amira 1 year ago

↳ replying to Josefa

I think it should be recorded with the second department to minimize costs.

Leonardo 1 year ago

I disagree. I think the asset should be recorded with the second department to minimize costs.

Krystina 1 year ago

I think Option D is the right choice. It's important to reflect the asset's transfer and the receiving department's book value.

Sherrell 1 year ago

↳ replying to Krystina

Yes, it's crucial for transparency and accountability within the government.

Valentin 1 year ago

↳ replying to Krystina

I agree, Option D ensures accurate tracking of the asset's value.

Barbra 2 years ago

Option C is the way to go! Keeping the asset in the tracking system with no change in book value is the most straightforward approach.

Chantay 2 years ago

I agree with Ona. It makes sense to keep track of the asset without changing the book value for either department.

Ona 2 years ago

I think the capital asset should be retained in the fixed asset tracking system with no change in book value to either department.

AGA CGFM Exam - Topic 3 Question 61 Discussion