When a lease payment is made, an entry is made in the debt service (or appropriate governmental) fund to record an expenditure, and an entry is made in the governmental activities accounts to reduce Lease Obligations Payable.

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This is a correct statement. When a lease payment is made, the governmental entity would record the expenditure in the debt service (or appropriate governmental) fund and reduce the Lease Obligations Payable in the governmental activities accounts.

When a Lease Payment Is Made, an Entry Is Made