General capital assets acquired under capital leases should not be recorded in the governmental activities accounts.

Name: General capital assets acquired under capital leases should not be recorded in the governmental activities accounts.
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General capital assets acquired under capital leases should be recorded in the governmental activities accounts, as they are considered an asset of the government. The lease payments should be recorded as both an expense and a reduction of the lease liability.

General Capital Assets Acquired Under Capital Leases Should Not Be