If a Lease Is Capitalized,how Is It Reported Under International

question 8

Multiple Choice

If a lease is capitalized,how is it reported under International Accounting Standards IAS 17?

• A)It shows up as a liability on the lessor's financial statements.
• B)It is a debt on the right-hand side of the lessee's balance sheet, and an asset on the left.
• C)The lease's present value shows as a liability on the lessee's balance sheet, but not as an asset.
• D)The lease becomes a capital asset for the lessor, allowing the firm to capitalize on its value to borrow more.

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Definitions:

Sociology

The study of the development, structure, and functioning of human society, including patterns of social relationships, social interaction, and culture.

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A system in which individuals are owned by others, deprived of personal freedom, and forced to work without compensation.

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Citizens of Canada, a country in North America, known for its multicultural society and bilingual official languages of English and French.

Segregation

The enforced separation of different racial or social groups within a community or society.