Which of the Following Accounts Would not appear on the Balance

question 34

Multiple Choice

Which of the following accounts would not appear on the balance sheet of a lessee company recording a capital lease?

• A)Accumulated depreciation on the leased asset
• B)Capital lease liability in the current liability section
• C)Capital leases liability in the long-term liability section
• D)Rent expense on the income statement

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Definitions:

Balance Sheet

A financial statement that provides an overview of a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, illustrating profitability.

Working Capital Ratio

The amount of current assets that would remain if all a company’s current liabilities were paid immediately; total current assets / total current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.