FASB Standard No. 13 requires explicit disclosure of ________ obligation on the firm's balance sheet. For this type of lease, the present value for all of its payments is shown as an asset and the total lease payment obligation is included as a liability on the firm's balance sheet.
A) an operating lease
B) a leveraged lease
C) a sale-leaseback
D) a capital lease

Question

Quizplus · Accepted Answer

FASB Standard No. 13 requires explicit disclosure of capital leases on the firm's balance sheet. For capital leases, the present value for all of its payments is shown as an asset and the total lease payment obligation is included as a liability on the firm's balance sheet.