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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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Question ajoutée par هيثم ناجى , محاسب اول , الفيوم لصناعة السكر
Date de publication: 2016/11/18
AHMAD OMAR  CMA-CertIFR
par AHMAD OMAR CMA-CertIFR , Accounting Manager , NADIA BAKHURJI ARCHITECTS & INTERIOR DESIGN CONSULTANTS

choice B - because the ownership of the asset is transferred o the lessee who will record the leased item as an asset and make depreciation.

Rizwan Chhapra
par Rizwan Chhapra , Chief Operating Officer , KURTA CORNER

B)  The lessor records the leased item as an asse

krishnamoorthy Achutham
par krishnamoorthy Achutham , DY Manager (Accounts) from April , DCW LIMITED,

C.Because the lessee cannot claim depreciation in his books for leased assets.

هيثم ناجى
par هيثم ناجى , محاسب اول , الفيوم لصناعة السكر

The correct answer is B

At the capital lease the lessor dont record the leased item as an asset

The lessor remove it from  books

Sandeep Kumar Pandey
par Sandeep Kumar Pandey , Senior Operations Executive , Noon.com

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

alsayed elshereif
par alsayed elshereif , Administration and Finance Manager , Future Harvest Est.

C. Is the correct

How come, the leesse depreciate an a unowned asset ??!!!

Majid Wangade
par Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )

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

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