Which of the Following Statements Characterizes an Operating Lease

question 57

Multiple Choice

Which of the following statements characterizes an operating lease?

• A) The lessee records depreciation and interest.
• B) The lessee records the lease obligation related to the leased asset.
• C) The lessor records depreciation and lease revenue.
• D) The lessor transfers title of the leased property to the lessee for the duration of the lease term.

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Definitions:

Neutrons

Particles in an atom with no electrical charge, found in the nucleus alongside protons.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atomic number and mass.

Cohesion

The attraction between molecules of the same substance, which helps to hold the substance together.

Solvency

The ability of an entity, whether an individual, company, or country, to meet its long-term financial commitments and debts.