Both the lease asset and the lease liability appear on the lessee's balance sheet under the capital lease method, whereas neither appears on the lessee's balance sheet under the operating lease method.

Question

Quizplus · Accepted Answer

This statement is true. The capital lease method requires that the leased asset and lease liability be recorded on the lessee's balance sheet, whereas the operating lease method does not require them to be recorded.

Both the Lease Asset and the Lease Liability Appear on the Lessee's