With an Operating Lease, ________

question 63

Multiple Choice

With an operating lease, ________.

• A) the lessee records rent expense and the lessor records rent revenue
• B) the lessee records interest expense and the lessor records interest revenue
• C) the lessee records rent expense and the lessor records interest revenue
• D) the lessee records depreciation expense and the lessor records rent revenue

---

Definitions:

Vacationing Abroad

The act of traveling to another country for leisure, exploration, or relaxation purposes.

Consumer Surplus

The disparity between the total sum consumers are ready to pay for a product or service and the actual amount they end up spending.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting extra benefit or profit.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.