The City of Roswell Has a 6/30 Fiscal Year-End

question 49

Multiple Choice

The City of Roswell has a 6/30 fiscal year-end.The City uses the consumption method for recognizing inventories and prepayments.On July 1, 2010, the City leased computer equipment for use in the City's general activities.The lease is a three-year lease that qualifies as an operating lease.The City prepaid the entire three-year rental fee of $45,000.At June 30, 2011, the appropriate account balances in the General Fund associated with this transaction would be

• A)Prepaid lease $0; Expenditures $45,000; Fund balance reserved for prepaid lease $0.
• B)Prepaid lease $30,000; Expenditures $15,000; Fund balance reserved for prepaid lease $30,000.
• C)Prepaid lease $30,000; Expenditures $45,000; Fund balance reserved for prepaid lease $30,000.
• D)Prepaid lease $30,000; Expenditures $15,000; Fund balance reserved for prepaid lease $0.

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Definitions:

Morality

The principles concerning the distinction between right and wrong or good and bad behavior.

Five Practices

A set of leadership behaviors or practices aimed at achieving positive organizational outcomes, though the specifics can vary depending on the model or theory.

Leadership

The action of leading a group of people or an organization, involving guiding, directing, and influencing others towards achieving common goals.

Kouzes And Posner

A duo renowned for their research and writings on leadership, particularly the Leadership Practices Inventory and the Five Practices of Exemplary Leadership model.