Under an operating lease,the lessee records which of the following?
A)Rent expense
B)Capital lease obligations
C)Depreciation on the leased asset
D)Capital lease assets

Question

Quizplus · Accepted Answer

Under an operating lease, the lessee records rent expense. The lessor retains ownership of the leased asset and the lessee is only required to make periodic rental payments for the use of the asset. Therefore, there is no need for the lessee to record a capital lease obligation or depreciation on the leased asset. Additionally, there are no capital lease assets recorded under an operating lease.

Under an Operating Lease,the Lessee Records Which of the Following