Matt Co. is the lessor in connection with a lease. Under the new ASU, Matt Co. would not record:
A)Accretion revenue.
B)A residual asset.
C)Interest revenue.
D)A right-of-use asset.

Question

Quizplus · Accepted Answer

Under the new ASU, lessors in connection with a lease do not record a right-of-use asset. The lessee records that asset instead. Therefore, options A, B, and C are incorrect as they refer to items that a lessor would typically record under the previous accounting standards.

Matt Co Is the Lessor in Connection with a Lease