Which of the Following Correctly Describes the Accounting for Leases

question 127

Multiple Choice

Which of the following correctly describes the accounting for leases?

• A)A capital lease is not reported on the balance sheet as a liability.
• B)A capital lease reports an asset on the balance sheet.
• C)An operating lease reports an operating asset on the balance sheet.
• D)An operating lease reports a liability on the balance sheet.

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Definitions:

Damage

Harm or injury that reduces the value or usefulness of something, which can be physical, financial, or reputational in nature.

Asian American

Refers to Americans of Asian descent, encompassing a diverse group of peoples from East Asia, Southeast Asia, and the Indian subcontinent.

Diversity

The inclusion of different types of people (such as people of various races, cultures, genders, etc.) in a group or organization to enrich perspectives and experiences.

Agricultural Products

Commodities produced through farming and livestock that are intended for consumption, including crops, meats, dairy, and other farm products.