Which of the following accounts would not appear on the balance sheet of a lessee company recording a capital lease after the first year of its ten-year life?
A)Accumulated depreciation on the leased asset
B)Lease obligation in the Current Liability section
C)Lease obligation in the Long-Term Liability section
D)Rent expense on the income statement

Question

Quizplus · Accepted Answer

Rent expense is reported on the income statement, not the balance sheet. Accumulated depreciation on the leased asset and lease obligations (both current and long-term portions) are reported on the balance sheet.

Which of the Following Accounts Would Not Appear on the Balance