How do the total expenses over the life of a capital lease compare with the total expenses over the life of an operating lease?
A) The expenses of a capital lease are greater for a capital lease than for an operating lease.
B) The expenses of an operating lease are greater than for a capital lease.
C) There is no difference between total expenses for an operating lease and a capital lease.
D) The total expenses cannot be compared.

Question

Quizplus · Accepted Answer

The total expenses over the life of a capital lease and an operating lease are generally the same, as both include the cost of using the asset. However, the timing and classification of expenses differ.

How Do the Total Expenses Over the Life of a Capital