New City entered into a lease agreement for several new dump trucks to be used in general government activities.Assuming the City maintains its books and records in a manner that facilitates the preparation of the fund financial statements, acquisition of these dump trucks would require entries in which of the following funds and/or schedules?

Question

Quizplus · Accepted Answer

The General Fund should record the lease payments for the dump trucks as an expenditure. The Schedule of General Fixed Assets should include the value of the dump trucks as an increase in the City's fixed asset holdings. The Schedule of General Long-Term Debt Obligations should record the lease payments for the dump trucks as an increase in the City's long-term debt. Therefore, the best choice is D, as it includes all the necessary funds and schedules to properly account for the acquisition of the dump trucks.

New City Entered into a Lease Agreement for Several New