Under the finance method of accounting for leases, under ASC 842, the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor
A) In increasing amounts during the term of the lease
B) In constant amounts during the term of the lease
C) In decreasing amounts during the term of the lease
D) After the cost of leased property has been fully recovered through rentals

Question

Quizplus · Accepted Answer

The Answer of Under the finance method of accounting for leases, under ASC 842, the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor
A) In increasing amounts during the term of the lease
B) In constant amounts during the term of the lease
C) In decreasing amounts during the term of the lease
D) After the cost of leased property has been fully recovered through rentals

Under the Finance Method of Accounting for Leases, Under ASC