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Which of the Following Statements About Capital Leases Is INCORRECT

Question 170

Multiple Choice

Which of the following statements about capital leases is INCORRECT?


A) A capital lease is noncancelable.
B) A capital lease is a long-term financial obligation.
C) Under a capital lease, the lessee records a lease liability at the beginning of the lease term.
D) Under a capital lease, the lessee's books do not report the leased asset.

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