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Thanks for your help! Olden City entered into a capital lease agreement for several new dump trucks to be used in general government activities. The
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Olden City entered into a capital lease agreement for several new dump trucks to be used in general government activities. 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? General fund only. General fund AND schedule of changes in long-term obligations. General fund AND schedule of changes in capital assets. General fund, schedule of Changes in Capital assets AND schedule of changes in long-term obligations. North City enters into a lease agreement that contains a no appropriation clause. The clause Has been held by courts in 26 states to effectively cancel the lease. Stipulates that the yearly lease payment must be appropriated by the city council each year. Prohibits the city from replacing leased property with similar property. Permits the city to lease at lower rates than would be possible without the presence of the clause. Why would a government issue revenue bonds (which generally are issued at a higher rate of interest than general obligation bonds) even though the government knows that if revenues from the project are not sufficient to cover principal and interest payments, the government will use resources from general government activities to fund the principal and interest payments? Revenue bonds may not require approval of the voters. Revenue bonds may not be considered in legal debt limitations. Revenue bonds may permit the interest costs to be passed on to the users of the services financed. All of the above
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