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Lessees Account for Operating Leases by

Question 6

Multiple Choice

Lessees account for operating leases by


A) recognizing lease payments in profit or loss on a straight-line basis over the lease term.
B) recording the leased asset in property, plant, and equipment.
C) recording a liability for the present value of the minimum lease payments.
D) making no entries in the financial statements because operating leases are considered off-balance sheet financing.

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