When a business acquires the right to use property by way of a finance lease,it will record on the balance sheet as:

Question

Quizplus · Accepted Answer

When a business acquires the right to use property by way of a finance lease, it is required to record both an asset and a liability on the balance sheet. The asset represents the property leased, while the liability represents the obligation to make lease payments. Therefore, option B is the correct answer.

When a Business Acquires the Right to Use Property by Way