Which type of lease will NOT increase a company's assets or long-term liabilities?
A)an operating lease that is less than one year
B)a finance lease
C)a lease that contains a purchase option that the lessee is expected to exercise
D)a lease that transfers title of the leased asset to the lessee at the end of the lease term

Question

Quizplus · Accepted Answer

An operating lease that is less than one year is considered a short-term lease and does not meet the criteria for increasing a company's assets or long-term liabilities under Generally Accepted Accounting Principles (GAAP).

Which Type of Lease Will NOT Increase a Company's Assets