Which of the following statements regarding the fi
Which of the following statements regarding the financial statement reporting of leases is most accurate?
A.Under an operating lease, the lease treats the entire lease payment as a cash outflow from operations.
B.The lessee’s current ratio is the same whether a lease is treated as an operating or finance lease.
C.At the inception of a direct financing lease, the lessor recognizes gross profit.
参考解答
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2024-10-27 12:40:43
Ans:A.
With an operating lease, the entire lease payment is recorded as rent expense and classified as an operating cash outflow.A finance lease results in a lower current ratio than an operating lease because the current portion of the principal repayment component will be added to current liabilities.The lessor does not recognize any profit at the inception of a direct financing lease.
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