When a Capital Lease Is Used to Lease Fixed Assets

question 30

Multiple Choice

When a capital lease is used to lease fixed assets for the general government,the governmental fund acquiring the fixed assets debits ________ at the ________.

• A)expenditures;future value of the minimum lease payments
• B)fixed assets;future value of the minimum lease payments
• C)expenditures;present value of the minimum lease payments
• D)fixed assets;present value of the minimum lease payments

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Definitions:

Ownership Percentage

The fraction of a company's shares owned by an individual or entity, representing a portion of control over the company.

General Partner

An owner of a partnership who has unlimited liability and is active in managing the firm, as opposed to a limited partner with limited liability.

Secondary Market

The market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.