Which of the Following Is an Appropriate Journal Entry for the Initial

question 10

Multiple Choice

Which of the following is an appropriate journal entry for the initial recognition by a lessee of an operating lease arrangement?

• A) DR Leased asset: CR Lease liability
• B) DR Lease rental expense: CR Cash/Accounts payable
• C) DR Leased asset: CR Cash/Accounts payable
• D) DR Lease asset: CR Lease interest expense

---

Definitions:

Walmart

Refers to an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Ethical Decision-Making

The method of examining and selecting options in a way that aligns with moral standards.

Course of Action

A plan or strategy designed to achieve a specific goal or to deal with a particular problem.

Stakeholders

Individuals or groups with an interest in the decisions and outcomes of a business, project, or policy, including employees, customers, investors, and communities.