An Operating Lease

question 119

Multiple Choice

An operating lease:

• A) Is also called a rent-to-own lease.
• B) Requires the lessee to record a leased asset and a lease liability.
• C) Allows the lessee to report rent expense.
• D) Is the economic equivalent of a purchase with a financing arrangement.
• E) None of these answers is correct.

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs that plays a key role in breathing.

Alveoli

Tiny air sacs within the lungs where the exchange of oxygen and carbon dioxide takes place.

Nasal Cavity

The large air-filled space above and behind the nose in the middle of the face that warms, moistens, and filters air entering the body through the nose.