When a Government Acquires General Fixed Assets Under a Capital

question 53

Multiple Choice

When a government acquires general fixed assets under a capital lease agreement,the asset should be recorded in the General Fund's fund basis financial statements:

• A) As a capital asset and lease obligation at the inception of the lease agreement at the lesser of the present value of the minimum lease payments or the fair market value of the property
• B) as an expenditure when payments are made
• C) As a capital asset and lease obligation at the inception of the lease agreement for the total lease payments
• D) as an expense when payments are made

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Definitions:

Ethnocentrism

The tendency to believe one’s culture and its values are superior to those of others.

Alternative Points

Perspectives or options that differ from the main or currently considered paths, often providing creative or novel solutions to problems.

Semantic Barriers

Involve a poor choice or use of words and mixed messages.

Formal Channels

Official, established routes of communication or transmission of information within an organization.