When a Business Acquires the Right to Use Property by Way

question 20

Multiple Choice

When a business acquires the right to use property by way of a finance lease,it will record on the balance sheet as:

• A) an asset only
• B) an asset and a liability
• C) neither an asset nor a liability
• D) a footnote only.

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Definitions:

Asian Cultures

The shared practices, languages, traditions, and beliefs of people living in Asian countries, which are diverse and vary significantly across the region.

Independence

The state of being self-reliant and not dependent on others for decision-making or support.

Object Permanence

The acknowledgment that objects keep their presence, unaffected by their immediate invisibility or inaudibility to human senses.

Self-reliant

The ability to rely on one's own capabilities, resources, and judgments to meet one's needs without external assistance.