A withdrawal of cash by the owner for personal use is recorded in the purchases journal.
a. True
b. False
Indicate whether the statement is true or false
Question 2
A government entered into a general government capital lease in the prior year. During the current year, a lease payment of 50,000, which includes implicit interest of 12,000, was made from the Genereal Fund.
What effect does the 50,000 payment have on the General Capital Assets and General Long-Term Liabilities accounts?
a. Increases net assets invested in capital assets by 38,000
b. Increases capital assets 50,000
c. Increases capital assets by 38,000
d. Decrease capital lease liability by 50,000
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