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Under the Pre-2019 Accounting Standards, How Are Operating Leases Reported

Question 9

Multiple Choice

Under the pre-2019 accounting standards, how are operating leases reported in the lessee's balance sheet?


A) As an asset that is depreciated, similar to the company's other assets.
B) As either a short-term or long-term liability, depending on the length of the lease
C) At the present value of the future minimum lease payments.
D) Operating leases are not disclosed in the lessee's balance sheet or annual report.
E) None of the above

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