Assume that a lessee leases equipment and insists on terms that qualify it as an operating lease,

Question:

Assume that a lessee leases equipment and insists on terms that qualify it as an operating lease, barely escaping the qualification as a capital lease. Discuss the impact that such an operating lease has on and related financial information as compared to the effect that a capital lease would have.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...