The Canadian Institute of Chartered Accountants requires explicit disclosure of obligation on the firm's balance sheet. For this type of lease, the present value for all of its paymentsis shown as an asset and the total lease payment obligation is included as a liability on the firm's balance sheet.
A) a sale-leaseback
B) an operating lease
C) a capital lease
D) a leveraged lease

Question

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A capital lease is a type of lease that requires explicit disclosure of obligation on the firm's balance sheet. The present value for all of its payments is shown as an asset and the total lease payment obligation is included as a liability on the firm's balance sheet, according to the Canadian Institute of Chartered Accountants.

The Canadian Institute of Chartered Accountants Requires Explicit Disclosure of Obligation