A lessee may have a leased item on his balance sheet as an asset,even though the lessee does not have the legal title of ownership to the leased item.

Question

Quizplus · Accepted Answer

This is true. If the lease meets certain criteria outlined in accounting standards, it may be classified as a finance lease and the lessee may recognize the leased item as an asset on their balance sheet, even though they do not have legal ownership.

A Lessee May Have a Leased Item on His Balance