Operating leases:
A) appear as offsetting items on the lessee's balance sheet.
B) are fully expensed at the time the lease is established.
C) are not included in the lessee's financial reports.
D) are treated the same as a purchase.
E) must be disclosed in the lessee's annual report.

Question

Quizplus · Accepted Answer

Operating leases must be disclosed in the lessee's annual report as they represent a commitment to future payments.

Operating Leases