Which of the following is FALSE,concerning operating leases?

Question

Quizplus · Accepted Answer

Operating leases are not recorded as present value of lease on the balance sheet. Instead, they are recorded as periodic rental expenses on the income statement and do not have a direct impact on the balance sheet. Choice B is therefore true, as an operating lease does not affect the balance sheet except for disclosing it in the notes to the financial statements. Choice C is also true, as operating leases are typically shorter than the asset's life. Choice D is subjective and not necessarily true or false for all companies.

Which of the Following Is FALSE,concerning Operating Leases