When a City Enters into a Capital Lease for a Fixed

Multiple Choice

When a city enters into a capital lease for a fixed asset for the general government,

A) government-wide statements will report an Encumbrance for the leased asset.
B) government-wide statements will report the liability,Capital Lease Obligation.
C) governmental fund statements will report a fixed asset.
D) governmental fund statements will report a liability,Capital Lease Obligation.