All of the following statements regarding leases are true except:
A)For a finance lease the lessee records the leased item as its own asset.
B)For a finance lease the lessee depreciates the asset acquired under the lease,but for an operating lease the lessee does not.
C)Finance leases create a long-term liability on the balance sheet,but operating leases do not.
D)Finance leases do not transfer ownership of the asset under the lease,but operating leases often do.
E)For an operating lease,amortization expense and interest expense are combined as lease expense on the income statement.

Question

Quizplus · Accepted Answer

Finance leases often transfer ownership of the asset to the lessee at the end of the lease term, whereas operating leases do not typically transfer ownership.

All of the Following Statements Regarding Leases Are True Except