However, if an entity leases an item for a long period of time, it has as much

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However, if an entity leases an item for a long period of time, it has as much control over the use of that item as if it owned it. A lease for a long time—almost the whole life of the asset—is called a capital lease . Because the entity controls the item for almost its whole life, a c _____ l ___ is recorded as an asset.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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