Asked by Abo Yousef Khaleel on May 01, 2024
Verified
An asset leased under an operating lease will appear on the balance sheet as a long-term asset.
Operating Lease
A leasing arrangement that allows for the use of an asset without transferring ownership rights, typically treated as an operating expense in financial statements.
Long-Term Asset
An asset that is expected to provide economic benefits to a business for more than one fiscal year, such as property, plant, and equipment.
- Ascertain the accurate classification of assets within the balance sheet.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
An asset leased under an operating lease will not appear on the balance sheet as a long-term asset. Instead, it will be recorded as an expense on the income statement over the lease term.
Learning Objectives
- Ascertain the accurate classification of assets within the balance sheet.