From the lessee's perspective, a finance lease results in all of the following except:

Question

Quizplus · Accepted Answer

A finance lease results in recognition of an asset and liability on the balance sheet as well as recognition of interest expense on the income statement. However, rent expense is not recognized because the lessee is deemed to have acquired the use of the asset in exchange for a series of payments, rather than simply renting it.

From the Lessee's Perspective, a Finance Lease Results in All