If the Lessee and Lessor Use Different Interest Rates to Account

question 138

Multiple Choice

If the lessee and lessor use different interest rates to account for a capital lease,then:

• A)Total expenses for the lessee will be different from the lessor's total revenues.
• B)Total expenses for the lessee will equal the lessor's total revenues.
• C)GAAP has been violated by at least one party.
• D)The lessee will report more net income for the year.