Which of the Following Statements Regarding Leases Is CORRECT

question 120

Multiple Choice

Which of the following statements regarding leases is CORRECT?

• A)Capital leases are favored over operating leases.
• B)A debit balance in the Leased Asset account on the balance sheet indicates an operating lease.
• C)Title is transferred to the lessee at the end of an operating lease term.
• D)Operating leases require the lessee to make rent payments.

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Definitions:

Archaeopteryx

An extinct dinosaur species known for having features of both birds and reptiles, considered a key piece of evidence in the evolution of birds.

Dinosaurs

A diverse group of reptiles of the clade Dinosauria, known from fossil evidence to have lived during the Mesozoic Era.

Phenotypes

Phenotypes are the observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Genotypes

The genetic makeup of an organism determining its characteristic traits.