A Government Enters into a Lease Agreement for the Purchase

question 50

Multiple Choice

A government enters into a lease agreement for the purchase of a new snow plow. The present value of the future lease payments is $845,500 and there is a down payment at the inception of the lease of $25,000. The snow plow should be recorded in the government-wide statement of net position at:

• A) $25,000.
• B) $870,500.
• C) $845,500.
• D) $0.

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Definitions:

Sensitization

The process of becoming more receptive or sensitive to a stimulus after repeated exposure to it.

Distal Stimuli

Objects and events in the external world that provide sensory input, as opposed to the sensory signals (proximal stimuli) actually perceived by the senses.

Psychophysics

The branch of psychology that deals with the relationships between physical stimuli and sensory perceptions and responses.

Discriminated Stimuli

Stimuli in operant conditioning that signal when a particular response will lead to a certain outcome.