The Town of Nowhere purchased a new telecommunications system for the police department. The town entered into a capital lease to finance the system. In the year of acquisition, entries will be necessary in
A) The General Fund, Debt Service Fund, and General Capital Assets accounts.
B) The Debt Service Fund, the General Capital Assets accounts, and the General Long-Term Liabilities accounts.
C) The General Capital Assets accounts and the General Long-Term Liabilities accounts.
D) The General Fund, the General Capital Assets accounts, and the General Long-Term Liabilities accounts.
Correct Answer:
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