The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as
A)a current asset
B)a long-term asset
C)a current asset for the current portion and a long-term asset for the remaining amount
D)only a note to the financial statements

Question

Quizplus · Accepted Answer

The initial portion of the lease receivable that is expected to be collected in the upcoming year should be reported as a current asset, while the remaining amount should be reported as a long-term asset. This is in accordance with the accounting principle of separating current and long-term balances on the balance sheet.

The Lessor Should Report the Lease Receivable for a Sales-Type