Which of the Following Represents the "Transfer of the Benefits

question 51

Multiple Choice

Which of the following represents the "transfer of the benefits and risks of ownership" approach to capital leases?

• A)Limit capital leases to leases that are virtually conditional sales agreements with installment payments.
• B)Capitalize leases where a purchase equivalent has occurred.
• C)The lease treatment is the same for lessor and lessee.
• D)Capitalize leases that are not true leases.

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