The central accounting issue associated with leases is:
A) the timing of the recognition of the lease payments.
B) whether or not the leased assets should be treated as assets of the lessee.
C) the treatment of provisions for the repairs and maintenance on leased assets.
D) the method of recording any commitment to guarantee the value of the asset at the end of the lease term.

Question

Quizplus · Accepted Answer

The central accounting issue with leases is determining whether the leased assets should be recognized as assets of the lessee, which affects how they are recorded on the balance sheet and how lease payments are treated in financial statements.

The Central Accounting Issue Associated with Leases Is