The best approach to determine whether a capital lease has been "kept off the books" is to do which of the following?
A)review all capital lease agreements that have been recorded.
B)examine the canceled checks for all recorded capital leases.
C)review all major lease agreements to determine whether there are other leases to be capitalized.
D)physically examine the asset and trace it to the general ledger.

Question

Quizplus · Accepted Answer

Reviewing all major lease agreements helps identify any leases that should be capitalized but have not been recorded, ensuring compliance with accounting standards.

The Best Approach to Determine Whether a Capital Lease Has