Which of the following is/are true of capital lease transactions?
A)Capital leases may only be recorded if the transaction involves a third party.
B)Capital leases always have a bargain purchase option.
C)The lease is valued at the future value of the benefits provided.
D)The accounting treatment adopted is generally the same for lessors and lessees.
E)All of the above.

Question

Quizplus · Accepted Answer

The accounting treatment adopted is generally the same for lessors and lessees. Capital leases do not require involvement of a third party, they may or may not include a bargain purchase option, and the lease is valued at the present value of the benefits provided.

Which of the Following Is/are True of Capital Lease Transactions