If a Company Leases an Asset Instead of Buying It,should

question 19

Multiple Choice

If a company leases an asset instead of buying it,should it show the asset on the Statement of Financial Position?

• A) No. The lease payments are shown as an expense on the Income Statement.
• B) Yes, but only if it was sold and then leased back.
• C) Yes, if the company is using the asset as if it was its own
• D) No. The asset remains the property of the lessor

---

Definitions:

Aging Population

Refers to a demographic trend where the median age of a population increases over time due to increasing life expectancy and/or declining birth rates.

Pathologist's Assistant

A trained healthcare professional who assists pathologists in preparing and examining bodies or tissues for disease diagnosis.

Frozen Sections

Thin slices of tissue samples that are frozen and cut for immediate pathological examination, often during surgical procedures.

Surgical Technician

A healthcare professional who assists surgeons during operations, ensuring that the surgical environment is safe, equipment is functioning properly, and the surgical team is supported.