Author Question: An Enterprise Fund entered into a capital lease for the purchase of equipment. The capitalizable ... (Read 171 times)

EAugust · **on:** Jul 5, 2018

An Enterprise Fund entered into a capital lease for the purchase of equipment. The capitalizable cost of the asset was 300,000 and fund made a 30,000 down payment. In the year of inception the Enterprise Fund would report

A. Expenses of 30,000.
B. Capital assets of 300,000.
C. Long-term liabilities of 300,000.
D. An other financing use of 270,000 and expenses of 30,000.

Question 2

Deferred expenses have
a. not yet been recorded as expenses but have been paid
b. been recorded as expenses and paid
c. been incurred and paid
d. not yet been recorded as expenses