During the term of the lease, assets recorded under capital leases are separately identified in the lessee's balance sheet.

Question

Quizplus · Accepted Answer

Assets recorded under capital leases (or finance leases, as they are called under newer accounting standards) are recognized separately on the lessee's balance sheet, typically under property, plant, and equipment, to distinguish them from assets owned outright.

During the Term of the Lease, Assets Recorded Under Capital