Which of the Following Is Properly Reported as an Other

question 51

Multiple Choice

Which of the following is properly reported as an other financing source by the General Fund?

• A) Sales taxes.
• B) Interfund transfers in.
• C) Parking fines.
• D) Sale of zoning maps.

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Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments.

Salvage Value

The estimated resale value of an asset at the end of its useful life, considered in depreciation calculations.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing the asset's expense.

Capital Lease

A lease agreement that is considered a purchase of the asset for accounting purposes because it transfers substantially all risks and rewards of ownership to the lessee.