Additional lessor conditions for classification as a nonoperating lease are consistent with the criteria of the:
A)Matching principle.
B)Cause and effect principle.
C)Materiality concept.
D)Realization principle.

Question

Quizplus · Accepted Answer

The realization principle is related to the recognition of revenue, which aligns with the criteria for classifying leases, as it involves recognizing income over the lease term.

Additional Lessor Conditions for Classification as a Nonoperating Lease Are