Leases of Short-Term Assets Are Operating Leases,and Leases of Long-Term

question 77

True/False

Leases of short-term assets are operating leases,and leases of long-term assets are capital leases.

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Definitions:

Business Transaction

An economic event that involves the exchange of goods, services, money, or assets between two or more parties that is recorded and has a financial impact.

Sequence

A specific order in which related events, movements, or things follow each other.

Liability Account

An accounting record that captures the amounts a company owes to others, including loans, payables, and other financial obligations.

Capital Account

An account on a national level that records transactions of assets, liabilities, and investments between domestic and foreign entities.