All of the Following Statements Regarding Leases Are True Except

question 94

Multiple Choice

All of the following statements regarding leases are true except:

• A)For a capital lease the lessee records the leased item as its own asset.
• B)For a capital lease the lessee depreciates the asset acquired under the lease,but for an operating lease the lessee does not.
• C)Capital leases create a long-term liability on the balance sheet,but operating leases do not.
• D)Capital leases do not transfer ownership of the asset under the lease,but operating leases often do.
• E)For an operating lease the lessee reports the lease payments as rental expense.

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Definitions:

Stress Symptoms

Physical or psychological signs indicating an individual is under significant stress.

Unanimous Agreement

A decision or proposition supported or agreed upon by all members of a group without dissent.

Articles Of Partnership

The written agreement that creates a partnership.

Nature Of The Firm's Business

The fundamental operations, activities, and commercial pursuits that define a company's core purpose and market presence.