If, as part of the accounting for a lease, the lessee debits an asset and credits a liability, then the lease must be a(n):
A)purchased lease.
B)operating lease.
C)cancelable lease.
D)capital lease.

Question

Quizplus · Accepted Answer

In a capital lease, the lessee records the leased asset as an asset and the lease obligation as a liability on the balance sheet, reflecting the acquisition of the asset and the obligation to make lease payments.

If, as Part of the Accounting for a Lease, the Lessee