A lease involving land and buildings:

Name: A lease involving land and buildings:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even though the lease involves both land and buildings, a determination still needs to be made as to whether it constitutes a finance or operating lease. The classification will determine how the lease is recorded on the balance sheet, with a finance lease resulting in both the land and buildings being recognized as assets and liabilities, while an operating lease will result in only the buildings being recognized.

A Lease Involving Land and Buildings