Which of the Following Accounts Would Not Appear on the Balance

question 15

Multiple Choice

Which of the following accounts would not appear on the balance sheet of a lessee company recording a capital lease?

• A) Accumulated depreciation on the leased asset
• B) Lease obligation in the current liability section
• C) Lease obligation in the long-term liability section
• D) Rent expense on the income statement

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Definitions:

Stock Exchanges

Marketplaces where stocks and other securities are bought and sold, functioning as a platform for companies to raise capital and for investors to trade.

NASDAQ

An international e-marketplace dedicated to the buying and selling of securities, which also acts as the benchmark for U.S. tech stocks.

NYSE

New York Stock Exchange; a leading global stock exchange where shares of public companies are bought and sold.

Dealer Market

A dealer market is a financial market mechanism in which dealers buy and sell securities for their own accounts, providing liquidity and pricing to the market.