When a lease is classified as an operating lease,the lease liability should be presented on the balance sheet of the lessee.

Question

Quizplus · Accepted Answer

A lease classified as an operating lease does not result in a lease liability being presented on the balance sheet of the lessee. Instead, the lease payments are recognized as an expense on the income statement. The lease only needs to be disclosed in the notes to the financial statements.

When a Lease Is Classified as an Operating Lease,the Lease