Which of the following statements is true concerning the accounting and financial reporting for capital leases in governmental funds?

a. Governmental entities apply essentially the same criteria as businesses to determine whether a lease is a capital lease.

b. When a governmental fund enters into a capital lease, the transaction should result in a capital outlay expenditure and an other financing source.

c. Capital leases in governmental funds do not result in a fund liability.

d. All of the above are true statements.

c. Items b and c are the only true statements