Prospect Budget Training 254 Practice Test

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A statement about the PRIP Revolving Fund replenishment is correct: Depreciation charged on fixed assets; All of the above; etc

Depreciation charged on fixed assets All of the above Charges for plant increment Additional appropriations from Congress

Correct Answer:

All of the above

Explanation:

Revolving fund replenishment comes from multiple funding streams that keep the fund able to replace and expand assets. Depreciation charged on fixed assets represents the ongoing recovery of asset costs as they wear out, providing funds to replenish the fund. Charges for plant increment cover the costs of adding capacity or improvements to the plant, allowing the fund to rebuild its asset base after expansion. When internal sources aren’t enough, additional appropriations from Congress can provide the necessary funds to replenish or grow the fund. Because each of these mechanisms can contribute to replenishment, the statement that all of the above applies is the best answer.

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