Beginning in 2019, Operating Leases Will Be Recorded

question 22

Multiple Choice

Beginning in 2019, operating leases will be recorded:

• A) only on the books of the lessor.
• B) only on the income statement of the lessee as each lease payment is expensed.
• C) as an asset on the balance with a value equal to the estimated residual value of the leased asset.
• D) in the footnotes rather than on the balance sheet.
• E) on the balance sheet of the lessee.

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Definitions:

Human Capital

The competencies, insights, and background that an individual or community has, seen from the perspective of their monetary or value contribution to an entity or state.

Physical Capital

Tangible assets that are used in the production of other goods or services, such as buildings, machinery, and equipment.

Technological Improvements

Innovations and advancements that enhance productivity, efficiency, and product quality in various industries.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or country.