Which of the following is true about FASB leasing standards?
A) FASB standards are identical to GASB standards.
B) FASB has three type of leases for lessees: sales type, direct financing and operating.
C) FASB distinguishes between capital and operating leases.
D) Governments have the option to follow the FASB standards.

Question

Quizplus · Accepted Answer

FASB distinguishes between finance (capital) leases and operating leases for lessees, requiring different accounting treatments for each.

Which of the Following Is True About FASB Leasing Standards