When a City Enters into a Capital Lease for a Fixed

question 22

Multiple Choice

When a city enters into a capital lease for a fixed asset for the general government,

• A)government-wide statements will report an Encumbrance for the leased asset.
• B)government-wide statements will report the liability,Capital Lease Obligation.
• C)governmental fund statements will report a fixed asset.
• D)governmental fund statements will report a liability,Capital Lease Obligation.

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Definitions:

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.

Ordering a Pizza

The act of requesting a pizza from a restaurant or food service, typically involving the selection of specific toppings, size, and delivery or pickup options.

Lessen Groupthink

The process of reducing the tendency of people in a group to conform to a prevailing point of view without critical reasoning or evaluation.

Cohesiveness of the Group

The strength of the bonds among group members and their commitment to staying together.