The appropriate asset value reported in the balance sheet by the lessee for an operating lease is:
A) Present value of the lease payments.
B) Sum of the lease payments.
C) The lessor's book value of the asset at the beginning of the lease.
D) Zero, unless a prepayment or accrual is involved.

Question

Quizplus · Accepted Answer

The Answer of The appropriate asset value reported in the balance sheet by the lessee for an operating lease is:
A) Present value of the lease payments.
B) Sum of the lease payments.
C) The lessor's book value of the asset at the beginning of the lease.
D) Zero, unless a prepayment or accrual is involved.

The Appropriate Asset Value Reported in the Balance Sheet by the Lessee