When the government acts as a lessor, which of the following is true? Which of the following is true? i. The lessor is selling the rights to the entire economic life of the asset.
ii. The lessor is selling a portion of the life economic life of the asset.
iii. The lessor should offset the receivable with the depreciation of the asset.
iv. The lessor should offset the receivable with deferred inflow of resources
A) I and II
B) III and IV
C) I and III
D) II and IV

Question

Quizplus · Accepted Answer

When the government acts as a lessor, it is not selling the rights to the entire economic life of the asset but rather a portion of the asset's economic life, which aligns with statement ii. Additionally, the lessor should offset the receivable with deferred inflow of resources, as per statement iv, which aligns with governmental accounting practices.

When the Government Acts as a Lessor, Which of the Following