Under an operating lease,the lessee
A) debits Capital Lease Equipment.
B) debits Rent Expense.
C) records depreciation on the leased asset.
D) credits Capital Lease Obligations.

Question

Quizplus · Accepted Answer

Under an operating lease, the lessee is not required to record the leased asset as a capitalized asset on their balance sheet. Instead, they should record the lease payments as rent expense. Therefore, the correct answer is to debit Rent Expense.

Under an Operating Lease,the Lessee