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متابعة

Which of the following statements about a capital lease is false?

A. The lessor capitalizes the net investment in the lease.

B. The lessor records the leased item as an asset.

C. The lessee records depreciation or capital cost allowance on the leased asset.

D. The lease arrangement represents a form of financing.

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تم إضافة السؤال من قبل مستخدم محذوف‎
تاريخ النشر: 2015/04/10
MOHAMMED  KHATER
من قبل MOHAMMED KHATER , Financial Accountant , الرياض

B. The lessor records the leased item as an asset.

essor records the leased item

Nadeem Aslam
من قبل Nadeem Aslam , Senior Accountant , Central Bureau Recruitment Services (Part of OTI Group)

Option C is correct. 

 

Lessor will not record Depreciation or capital cost allowance on leased assets. Lease can do this in case of finance lease.

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