A capital lease has many of the characteristics of a long-term debt obligation.

Question

Quizplus · Accepted Answer

A capital lease is a type of lease where the lessee (the borrower) is considered the owner of the leased asset and the lessor (the lender) is considered the financer. The lessee typically makes regular payments to the lessor for a set period of time, similar to long-term debt obligations. As such, a capital lease has many of the characteristics of a long-term debt obligation, which makes answer A true.

A Capital Lease Has Many of the Characteristics of a Long-Term