Equal monthly rental payments for a particular lease should be charged to Rental Expense by the lessee for which of the following? Capital Lease Operating Lease
A) Yes No
B) Yes Yes
C) No No
D) No Yes

Question

Quizplus · Accepted Answer

Equal monthly rental payments for an operating lease should be charged to Rental Expense by the lessee. For a capital lease, the lessee records the asset and liability at the present value of the lease payments and recognizes interest and depreciation, rather than rental expense.

Equal Monthly Rental Payments for a Particular Lease Should Be