If General Capital Assets Are Being Acquired by a Government

question 74

Essay

If general capital assets are being acquired by a government under a capital lease agreement,describe the entries that should be recorded in a governmental fund (logically,a debt service fund)for each lease payment.

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Definitions:

Implied Warranty

An implied warranty is a legal term for the assurances that are not explicitly stated but that the law infers that goods are fit for their intended purpose.

Subsequent Purchasers

Individuals or entities that acquire property after the first or original owner, subject to existing rights or covenants.

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability without being explicitly stated.

Confusing

Something that is difficult to understand or makes one perplexed.