Governmental entities enter into capital leases, rather than conventional buy and borrow arrangements for which of the following reasons? Capital leases

Question

Quizplus · Accepted Answer

Capital leases may be an effective means of circumventing debt limitations, as they are not considered long-term debt on the government's balance sheet. Instead, they are recorded as a liability for the current fiscal year, which allows the government to acquire assets without exceeding debt limits.

Governmental Entities Enter into Capital Leases, Rather Than Conventional Buy