For an operating lease, the amount initially capitalized by the lessee is the present value of the lease rents to be paid over the lease term.

Name: For an operating lease, the amount initially capitalized by the lessee is the present value of the lease rents to be paid over the lease term.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

In an operating lease, the lessee does not capitalize the present value of lease payments. Instead, lease payments are recognized as an expense on a straight-line basis over the lease term.

For an Operating Lease, the Amount Initially Capitalized by the Lessee