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If a city acquires a new office building under a capital lease agreement, 1)The cost of the building should be reported in the __2)The "cost" of the building is computed as ____3)A governmental fund should record the cost of the building as an expenditure, offset by a credit to_____4)The liability for the capital lease should be recorded in the _____5)The liability should be computed as ____The sale of tax-supported-bonds at par for the eventual construction of a new city jail would require recognition in which of the following funds and/or activities:A)Debt service fund, capital projects, and governmental activitiesB)Capital projects fund and the governmental activitiesC)Capital projects and debt service fundsD)Debt service fund and governmental activitiesWhich of the following circumstances would indicate that a potential component unit (PCU) should be included as part of the governmental financial reporting entity?A)Both B and C occurring together indicate that the PCU should be included in the reporting entity B) The primary government does not approve the operating budget of the potential component unitC) Officials of the primary government appoint a majority of the members of the governing board of the PCU.D)The PCU has sufficient operational and financial dependence that the primary government can impose its will on the PCU.The City of Oldetown purchased a vehicle for the police department. If the operations of the police department are financed by general revenues, the purchase would be recorded in which funds and/or activities?A)General Fund: No, Governmental Activities:YesB)General Fund:Yes, Governmental Activities: YesC)General Fund:Yes. Governmental Activities:NoD)General Fund:No, Governmental Activites:No

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