Which of the following describes how a governmental fund (e.g.general fund)accounts for a capital lease?
A)As a noncurrent liability
B)In a manner similar to how the fund accounts for bonds.
C)As an asset and a lease liability
D)None of the choices identifies the appropriate way to account for a capital lease.

Question

Quizplus · Accepted Answer

Governmental funds account for capital leases in a manner similar to bonds, recognizing the lease obligation and corresponding asset in the fund's financial statements.

Which of the Following Describes How a Governmental Fund (E