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

question 48

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:

Taut

An expression or statement that is redundantly repetitive or circular in its reasoning, effectively always true.

Contra

Against or in opposition to a particular argument or claim.

Add

In the context of mathematics or logic, to perform the operation of addition, which is the process of combining two or more quantities.

UI

Stands for User Interface, which is the means by which user interacts with a machine, software or device.