For an Operating Lease,the Lessee,not the Lessor,records the Amortization Expense

question 160

True/False

For an operating lease,the lessee,not the lessor,records the amortization expense on the leased asset.

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Definitions:

Asset Accounts

Accounts that represent resources owned or controlled by a company that have future economic value.

Accounts Payable

Financial obligations of a company towards creditors, resulting from goods and services acquired on a credit basis.

Unearned Revenue

Money received by a company for goods or services that have not yet been delivered or performed, considered a liability until the income is earned.

Cash

Money in the form of coins or banknotes, especially that held to conduct transactions or as part of a business's liquid assets.