The acquisition of long-lived assets under an operating lease does not require any asset recognition in the accounts of any governmental fund.

Name: The acquisition of long-lived assets under an operating lease does not require any asset recognition in the accounts of any governmental fund.
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Under an operating lease, the lessee does not recognize the leased asset on the balance sheet in governmental funds, as these funds use a modified accrual basis of accounting.

The Acquisition of Long-Lived Assets Under an Operating Lease Does