Under CICA,________ is viewed as a rental for accounting purposes.In this case,the lessee reports the entire lease payment as an operating expense.

Question

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According to CICA, an operating lease is viewed as a rental for accounting purposes. Therefore, the lessee reports the entire lease payment as an operating expense. Capital leases, on the other hand, are recognized as assets and liabilities on the balance sheet, and the lease payments are split between interest expense and a reduction in the lease liability. Short-term and temporary leases do not have specific accounting treatments under CICA.

Under CICA,________ Is Viewed as a Rental for Accounting Purposes