The capital lease method is appropriate when the lessee enjoys most of the _____ and bears most of the _____ of ownership.
A)risks; rewards
B)rewards; risks
C)cash receipts; cash disbursements
D)cash disbursements; cash receipts
E)cash receipts; risks

Question

Quizplus · Accepted Answer

The capital lease method is used when the lessee enjoys most of the rewards and bears most of the risks of ownership, effectively treating the lease as a purchase.

The Capital Lease Method Is Appropriate When the Lessee Enjoys