Prior to 2019, Lessees Did Not Include the Right-Of-Use Asset

question 73

Multiple Choice

Prior to 2019, lessees did not include the right-of-use asset and the lease liability for operating leases on their balance sheets. Both FASB and IASB wrote new standards to require that lessees nearly always report an asset and liability on their balance sheets when they engage in a lease transaction. This accounting results in which of the following?

• A) a more reliable estimation of the lease's value
• B) a more faithful representation of the rights and obligations arising from leases
• C) a better determination on whether the lessor held the risks and rewards of the leased asset's ownership
• D) All of the above

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The degree to which something is pertinent or significantly related to an individual's life or interests.

Memory Access

involves the processes by which the information stored in memory is retrieved.

Specificity

The quality of being clearly defined or specific, often used to describe the precise nature of something such as an instruction, task, or condition.

Stereotype

A fixed, over-generalized belief about a particular group or class of people, often leading to prejudgment.