All leases are classified as either:
A) capital leases or long-term leases.
B) capital leases or operating leases.
C) operating leases or finance leases.
D) long-term leases or current leases.

Question

Quizplus · Accepted Answer

Leases will either be classified as operating leases or finance leases. If the lease is classified as a finance lease both the leased asset and the lease obligation are recognised on the statement of financial position.

All Leases Are Classified as Either