If a Lease Is Capitalized, It Has One of the Following

question 54

Multiple Choice

If a lease is capitalized, it has one of the following attributes:

• A)it shows up as a liability on the lessor's financial statements.
• B)it is debt on the right-hand side of the lessee's balance sheet, and an asset on the left.
• C)the lease's present value shows as a liability on the lessee's balance sheet, but not an asset.
• D)the lease becomes a capital asset for the lessor, allowing him to capitalize on its value to borrow more.

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Definitions:

Self-Compassion

The act of showing compassion and empathy towards oneself during times of suffering or failure, instead of engaging in severe self-judgment.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

Self-Serving Bias

The common tendency to attribute successes to personal characteristics and failures to external factors, often to maintain self-esteem.

Actor-Observer Effect

The tendency to make internal attributions for the behavior of others and external attributions for our own behavior.