The difference in the lessor's income recognition over the life of the lease,between an operating lease and a capital lease is
A)zero.
B)the amount of the interest revenue.
C)the financing revenue minus the depreciation.
D)the depreciation expense.

Question

Quizplus · Accepted Answer

The total income recognized over the life of the lease by the lessor is the same for both operating and capital leases. The difference lies in the timing and classification of the income, not the total amount recognized.

The Difference in the Lessor's Income Recognition Over the Life