Use the Following to Answer the Next Three Questions

question 119

Multiple Choice

Use the following to answer the next three questions:
A government entered into a capital lease agreement to acquire equipment for the general government on January 1, 2012. Five payments of $8,000 each are to be made, beginning on December 31, 2012. Discounting is at 6%, computed annually. The present value of the five payments is $33,699.
-Which of the following would be true as of January 1,2012?

• A) An entry would be made debiting Expenditures and crediting Other Financing Sources-Capital Leases in a governmental fund, both in the amount of $21,062.
• B) An entry would be made debiting Equipment and crediting Capital Leases Payable in a governmental fund, both in the amount of $21,062.
• C) An entry would be made debiting Equipment and crediting Capital Leases Payable in a governmental fund, both in the amount of $25,000.
• D) An entry would be made debiting Expenditures and crediting Other Financing Sources-Capital Leases in a governmental fund, both in the amount of $25,000

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Definitions:

Light Focuses

Refers to the convergence, bending, or direction of light rays to a point, which is fundamental in optics for creating images in cameras, telescopes, and the human eye.

Retina

A thin layer of tissue at the back of the eye that contains cells sensitive to light, which convert images into electrical signals sent to the brain.

Receptors

are specialized cells or proteins that detect and respond to external signals such as chemicals, light, or pressure.

Seeing Details

refers to the ability to perceive fine or small elements or differences in objects, images, or scenes.