Capital leases are most similar to:

Question

Quizplus · Accepted Answer

Capital leases are similar to mortgage notes as they involve the use of an asset (usually property) and require the lessee to make fixed payments over a period of time. The lessee also has the option to purchase the asset at the end of the lease term. Accounts payable and unearned revenue are both liabilities, but they do not involve the use of an asset in the same way that capital leases do. Regular notes payable may involve the borrowing of funds, but they do not necessarily involve the use of an asset as collateral, as is the case with a capital lease.

Capital Leases Are Most Similar To