Which of the Following Describes How a Governmental Fund (E

question 24

Multiple Choice

Which of the following describes how a governmental fund (e.g. general fund) accounts for a capital lease:

• A) noncurrent liability
• B) bond accounting
• C) an asset and a lease liability
• D) none of these identifies the appropriate way to account for a capital lease.

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Definitions:

Financial Arrangements

Agreements and plans made for handling and organizing financial accounts and obligations.

Children of Divorce

Refers to individuals who have experienced the separation or legal dissolution of their parents' marriage during their childhood.

Common Reaction

A typical response or behavior that most people display in reaction to a certain situation or stimulus.

Guilt

A feeling of having done wrong or failed in an obligation.