Which type of lease will NOT increase a company's assets or long-term liabilities?
A)an operating lease
B)a capital lease
C)a lease that contains a bargain purchase option
D)a lease that transfers title of the leased asset to the lessee at the end of the lease term

Question

Quizplus · Accepted Answer

An operating lease is treated as a rental expense and does not appear on the balance sheet, thus it does not increase a company's assets or long-term liabilities.

Which Type of Lease Will NOT Increase a Company's Assets