The lessee should report capital lease obligations on the balance sheet as

Question

Quizplus · Accepted Answer

Capital lease obligations should be reported on the balance sheet as a current liability for the current portion and a long-term liability for the remaining amount. This is because the current portion of the lease (due within one year) should be classified as a current liability, while the remaining amount should be classified as a long-term liability.

The Lessee Should Report Capital Lease Obligations on the Balance