Which of the following statements is characteristic of leases? a.If a lease is classified as an operating lease, the lessee records an asset on its statement of financial position. b.Lease agreements are not a popular form of financing the purchase of assets because leases require a large initial outlay of cash. c.If a lessor classifies a lease as a finance lease, the lessor records a lease liability on its statement of earnings. d.Accounting recognizes two types of leases—operating and finance.
Which of the following statements is characteristic of leases? a.If a lease is classified as an operating lease, the lessee records an asset on its statement of financial position. b.Lease agreements are not a popular form of financing the purchase of assets because leases require a large initial outlay of cash. c.If a lessor classifies a lease as a finance lease, the lessor records a lease liability on its statement of earnings. d.Accounting recognizes two types of leases—operating and finance.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 13GI: What is the basic difference between the accounting procedures used by a lessor for a sales-type...
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Which of the following statements is characteristic of leases?
a.If a lease is classified as an operating lease, the lessee records an asset on its statement of financial position .
b.Lease agreements are not a popular form of financing the purchase of assets because leases require a large initial outlay of cash.
c.If a lessor classifies a lease as a finance lease, the lessor records a lease liability on its statement of earnings.
d.Accounting recognizes two types of leases—operating and finance.
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