A drawing account represents the amount of withdrawals made by the owner.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Jamestown has decided to enter into a capital lease for the purchase of its new recycling truck. The capitalizable cost of the capital asset is 175,000 and Jamestown made a 30,000 down payment at the inception of the lease agreement.
The estimated useful life of the truck is ten years with 0 salvage value. Which of the following statements is false?
A. General Fund fund balance will be reduced by 175,000.
B. Other financing sources of 145,000 will be reported in Year 1.
C. Expenditures of 175,000 will be reported in Year 1.
D. Depreciation expense on the truck will be 17,500 per year.
A healthy diet is made up of well-balanced nutrients.
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