A capital leased asset would appear on the balance sheet as:
A)Current liability
B)Capital Lease Liability
C)Current asset
D)Prepaid Lease Expense

Question

Quizplus · Accepted Answer

A capital leased asset is a long-term asset that is acquired through a capital lease agreement. The long-term liability that is created by the lease contract is known as the capital lease liability, which is recorded on the balance sheet. Therefore, the best choice is B, Capital Lease Liability.

A Capital Leased Asset Would Appear on the Balance Sheet