Assume That a Governmental Entity Acquires a New Garbage Truck

question 38

Multiple Choice

Assume that a governmental entity acquires a new garbage truck. The garbage truck costs $189,000. The vendor allowed a $30,000 allowance with the trade-in of the entity's old garbage truck, which had a net book value of $42,000. The government financed the balance with a short-term bank note. The new garbage truck would be recorded in the General Capital Assets account at

• A) $147,000.
• B) $159,000.
• C) $189,000.
• D) $201,000.

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Definitions:

Gambler's Fallacy

The incorrect belief that future probabilities are altered by past events, often found in contexts of betting and decision-making.

Expected Utility

A concept in economics and game theory measuring the anticipated benefit or satisfaction from an action, given uncertainties.

Content Effect

Performance variability on reasoning tasks that require identical kinds of formal reasoning but are dissimilar in superficial content.

MAUT

Multi-Attribute Utility Theory, a framework used in decision making to evaluate and compare choices based on multiple criteria.