Final answer:
The correct method to record a lease for a general capital asset in the governmental activities accounts at inception is to debit General Capital Assets and credit Lease Liability for the total lease payments. This records the asset and establishes a liability for the lease obligation.
Step-by-step explanation:
When a government enters into a lease for a general capital asset, the correct way to record this transaction at the inception of the lease in the governmental activities accounts is a. Debit: General Capital Assets $[Total Lease Payments]; Credit: Lease Liability $[Total Lease Payments]. Here, the government is recognizing the leased asset as a capital asset and is creating a liability for the obligation to make lease payments.
The entry records the asset at its historical cost as if it had been purchased. Over time, lease payments will reduce the liability and also be recorded as an expense or an outflow of resources. The expense recognition, however, follows the amortization or systematic elimination of the liability over time, rather than at inception.