The accounting principles used in lease accounting attempt to provide symmetry between the lessee and lessor. With respect to lease rental payments in a capital lease, they are considered to consist of both interest and principal by the

$\begin{array}{cc}
& \text{Lessee} &\text{ Lessor} \\end{array}$
A)$\begin{array}{cc}& \text{Yes }& \text{No} \\end{array}$
B)$\begin{array}{cc}&\text{ No} & \text{Yes} \\end{array}$
C)$\begin{array}{cc}&\text{ Yes} & \text{Yes} \\end{array}$
D)$\begin{array}{cc} &\text{ No }& \text{No} \\end{array}$

Question

The accounting principles used in lease accounting attempt to provide symmetry between the lessee and lessor. With respect to lease rental payments in a capital lease, they are considered to consist of both interest and principal by the

\begin{array}{cc} & \text{Lessee} &\text{ Lessor} \\\end{array}

$\begin{array}{cc}
 & \text{Lessee} &\text{ Lessor} \\end{array}$
A)$\begin{array}{cc}& \text{Yes }& \text{No} \\end{array}$
B)$\begin{array}{cc}&\text{ No} & \text{Yes} \\end{array}$
C)$\begin{array}{cc}&\text{ Yes} & \text{Yes} \\end{array}$
D)$\begin{array}{cc} &\text{ No }& \text{No} \\end{array}$

Quizplus · Accepted Answer

In lease accounting, both the lessee and lessor consider lease rental payments in a capital lease to consist of both interest and principal components, reflecting the financial reality of the transaction from both perspectives.

The Accounting Principles Used in Lease Accounting Attempt to Provide Lessee Lessor\begin{array}{cc} & \text{Lessee} &\text{ Lessor} \\\end{array}​Lessee​ Lessor​

The Accounting Principles Used in Lease Accounting Attempt to Provide $\begin{array}{cc} & \text{Lessee} &\text{ Lessor} \\\end{array}$