When a Government Acquires General Fixed Assets Under a Capital

question 58

Multiple Choice

When a government acquires general fixed assets under a capital lease agreement, the asset should be recorded in the General Fund's fund basis financial statements:

• A) As a capital asset and lease obligation at the inception of the lease agreement at the lesser of the present value of the minimum lease payments or the fair market value of the property
• B) as debt service expenditures when payments are made
• C) As a capital asset and lease obligation at the inception of the lease agreement for the total lease payments
• D) as an expense when payments are made

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Definitions:

Appealing

Having an attractive or interesting quality that draws attention or desire.

Traditional Communications Model

A classic framework in communications studies that outlines the process of transmitting a message from a sender to a receiver through a medium.

First-order Response

A basic, immediate reaction to a stimulus or situation, often used in the context of systems or psychological reactions.

First-order Response

An immediate reaction or reply to a stimulus or situation without involving deeper processing or analysis.