When Sunny City Makes Its Annual Lease Payment on an Unpaid

question 66

Multiple Choice

When Sunny City makes its annual lease payment on an unpaid lease obligation, the journal entry for the governmental activities accounts will include:

• A) A debit to Lease Obligation Payable.
• B) A credit to Lease Obligation Payable.
• C) A debit to Lease Expense.
• D) A debit to Expenditures-Principal of Lease Obligation.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for rapid responses to stressors, activating the fight-or-flight response.

Somatic

Relating to or affecting the body, especially as distinct from the mind.

Parasympathetic

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing digestive activities.

Gonads

Sex glands; secrete hormones that regulate sexual development and behavior as well as reproduction.