Asked by Alondra Cardenas on Jun 30, 2024
Verified
The lessee has substantially all of the benefits and risks of ownership in a(n)
A) apartment lease.
B) capital lease.
C) operating lease.
D) operating lease and a capital lease.
Capital Lease
A lease agreement in which the lessee essentially acquires all the risks and rewards of ownership, akin to a financial purchase.
Operating Lease
A leasing agreement for the use of an asset, where the lessee does not assume the risk of ownership.
Benefits and Risks
An assessment of the positive outcomes (benefits) and potential negative outcomes (risks) associated with a decision or action.
- Comprehend the approach to and effects of leases within the realm of financial accounting.
- Identify the criteria for distinguishing a lease as a capital lease or an operating lease.
Verified Answer
Learning Objectives
- Comprehend the approach to and effects of leases within the realm of financial accounting.
- Identify the criteria for distinguishing a lease as a capital lease or an operating lease.
Related questions
Which of the Following Statements Concerning Leases Is True ...
A Lease Where the Intent Is Temporary Use of the ...
A Capital Lease Requires the Lessee to Record the Lease ...
Operating Leases Are Leases That the Lessee Must Capitalize on ...
Under a Capital Lease the Lease/asset Is Reported on the ...