Which entries are not needed by the lessee for a finance lease?
A)Recording of interest expense.
B)Recording of the lease obligation.
C)Recording of rental expense.
D)Recording of depreciation expense.

Question

Quizplus · Accepted Answer

For a finance lease, the lessee does not record rental expense. Instead, they record interest expense and depreciation expense, reflecting the acquisition and financing of an asset.

Which Entries Are Not Needed by the Lessee for a Finance