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Which of the Following Is Not Correct Regarding Accounting for a Financial

Question 24

Multiple Choice

Which of the following is not correct regarding accounting for a financial lease?


A) Periodic interest paid is shown as an expense for the lessee
B) Periodic interest received is shown as income for the lessor
C) Periodic principal repayment is shown as an expense for the lessee
D) Depreciation expense related to the asset is reported by the lessee
E) The lessor reports a gain or loss on the asset at the time of the arrangement

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