Generally Accepted Accounting Principles Require That Certain Lease Agreements Be

question 41

Multiple Choice

Generally accepted accounting principles require that certain lease agreements be accounted for as purchases. The theoretical basis for this treatment is that a lease of this type

• A) Effectively controls the right of use of identified property
• B) Is an example of form over substance
• C) Provides the use of the leased asset to the lessee for a limited period of time
• D) Must be recorded in accordance with the concept of cause and effect