Which entry is needed by the lessee for an operating lease?
A)Recording of interest expense.
B)Recording of the lease obligation.
C)Recording of rental expense.
D)Recording of depreciation expense.

Question

Quizplus · Accepted Answer

The lessee needs to record rental expense for operating lease as it represents the cost of using the leased asset for a period of time, without ownership. The lessee does not need to record interest expense, lease obligation, or depreciation expense for an operating lease.

Which Entry Is Needed by the Lessee for an Operating