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Which of the Following Statements Is Not True Relating to a Capitalized

Question 1

Multiple Choice

Which of the following statements is not true relating to a capitalized (capital) lease?


A) A capital lease is handled as if the lessee bought the asset.
B) The leased asset is in the fixed assets and the related obligation is included in liabilities.
C) On the balance sheet,the capitalized asset amount will not usually agree with the capitalized liability amount because the liability is reduced by payments,and the asset is reduced by depreciation taken.
D) Usually,a company depreciates capitalized leases faster than payments are made.
E) On the balance sheet,the capitalized asset amount will usually be higher than the capitalized liability amount.

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