For a lessor to classify a lease as a capital lease,collectability of the required minimum lease payments must be reasonable assured.

Question

Quizplus · Accepted Answer

According to the accounting standard ASC 840, one of the criteria for classifying a lease as a capital lease is that the lessor reasonably anticipates the collectability of the minimum lease payments. Therefore, the statement is true.

For a Lessor to Classify a Lease as a Capital