The lessee's balance sheet liability for a capital lease would be periodically reduced by the

Name: The lessee's balance sheet liability for a capital lease would be periodically reduced by the
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

The lessee's balance sheet liability for a capital lease is periodically reduced by the minimum lease payment less the portion of the payment that is allocated to interest. This is because the interest portion represents the cost of borrowing, while the remainder reduces the outstanding lease liability.

The Lessee's Balance Sheet Liability for a Capital Lease Would