Capital lease payments should be recorded by a debt service fund rather than the fund using the leased asset.

Name: Capital lease payments should be recorded by a debt service fund rather than the fund using the leased asset.
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Question

Quizplus · Accepted Answer

Payments required by capital leases are merely installment payments of general long-term debt and interest on the unpaid debt; it is logical to record such payments in a debt service fund rather than in the fund using the leased assets.

Capital Lease Payments Should Be Recorded by a Debt Service