Which of the Following Applies If a Lease Is Interpreted

question 8

Multiple Choice

Which of the following applies if a lease is interpreted as unilaterally unperformed by the lessee?

• A)The lease contract is fully executed by the lessor when possession of the leased asset is transferred to the lessee.
• B)An asset and liability do not exist for the lessee.
• C)The lessor permits use of the asset for one period at a time and only if the rentals are paid by the lessee.
• D)Current lease payments are expensed by the lessee.