When a Government Acquires General Fixed Assets Under a Capital

Multiple Choice

When a government acquires general fixed assets under a capital lease agreement,the asset should be recorded in the government-wide financial statements:

A) at the inception of the lease agreement at the lesser of the present value of the minimum lease payments or the fair market value of the property.
B) as an expenditure when payments are made.
C) at the inception of the lease agreement for the total lease payments.
D) as an expense when payments are made.