The CICA Distinguishes Two Types of Leases Based on the Lease

question 50

Multiple Choice

The CICA distinguishes two types of leases based on the lease terms,and this classification determines the lease's accounting treatment.The two types of leases are

• A) fixed leases and variable leases.
• B) long-term leases and short-term leases.
• C) operating leases and capital leases.
• D) temporary leases and permanent leases.

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Definitions:

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