Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is true?
a. The operating lease method treats leases as executory contracts.
b. The operating lease method recognizes a leased asset on the lessee's statement of cash flows.
c. The operating lease method recognizes a lease liability on the lessee's balance sheet.
d. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time.
e. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.
A
You might also like to view...
The complexities of ABC have caused many firms to abandon this method in favor of a simpler accounting model called value stream accounting
Indicate whether the statement is true or false
Companies, popular culture, customers, and influencers are forms of brand authors
Indicate whether the statement is true or false
Indicate the correct form of the verb in parentheses. (present tense of do) you know the new professor?
Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability
Indicate whether the statement is true or false