If a Lease Is Capitalized,how Is It Reported Under International

question 8

Multiple Choice

If a lease is capitalized,how is it reported under International Accounting Standards IAS 17?

• A)It shows up as a liability on the lessor's financial statements.
• B)It is a 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 as an asset.
• D)The lease becomes a capital asset for the lessor, allowing the firm to capitalize on its value to borrow more.

---

Definitions:

Recall Notice

An announcement issued by a manufacturer or regulatory agency to inform consumers about a defect or safety concern with a product and instructions for fixing or returning it.

Appointment Card

A card given to patients by medical providers with details of their next scheduled appointment.

Self-Address

The process of directing communication or packages to oneself, usually by providing one's own address as both the sender and recipient.

Reminder Call

A phone call or digital notification sent to prompt or remind someone of an upcoming event or deadline.