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When an Internal Service Fund (ISF)enters into a Capital Lease

question 49

Multiple Choice

When an internal service fund (ISF) enters into a capital lease the transaction is recorded in the:
I.fixed assets of the ISF.
II.long-term debt of the ISF.


Definitions:

Consumption

The action of using up goods and services to satisfy needs or desires.

Income

The financial gain received by an individual or entity, usually through employment, investments, or business operations.

Interest Rate

The percentage of principal charged by the lender for the use of its money.

Budget Constraint

An economic model that outlines the combination of goods and services a consumer can purchase given their income and the prices of those goods and services.

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