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If the Lessor and Lessee Use Different Interest Rates to Account

Question 114

Multiple Choice

If the lessor and lessee use different interest rates to account for a finance lease,then:


A) the lessor will use different account titles to record the leasing transaction.
B) total expenses (or revenues) will be equal for each.
C) total expenses (or revenues) will be different for each.
D) the lessee and lessor cannot use different interest rates.

Correct Answer:

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