Which of the Following Is Not True About a Capital

question 39

Multiple Choice

Which of the following is not true about a capital lease?

• A)The entire amount of each lease payment is considered rent expense.
• B)Is used when the assets leased is in substance purchased.
• C)When a capital lease is used an asset is recorded and depreciated over its useful life.
• D)When a capital lease is used interest expense is incurred on each payment.

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