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In the Year a City Enters into a Capital Lease

Question 34

Multiple Choice

In the year a city enters into a capital lease to finance a new sanitation truck, the General Fund will report


A) An increase in capital assets.
B) A decrease in fund balance equal to the cost of the new sanitation truck.
C) An other financing use.
D) A decrease in fund balance equal to the amount of any down payment required.

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