1. Leases and financial statements Aa A leasels an agreement that allows one party to use anather party's propsrty, plat, or squipmet. Leases have bsome an impotant sou for financing fed anses for buineses and corsumers rn ase agreement, the the lasd a,whichae owned by the Lease agreements can take several forms depending on the needs of the lsandssar. dafy the typesf lenes descibed in the following tabe. Financial Lease Lease Sale and Leascback The lse fuly amartizsd, and the lessar e payments oqual to the price ofthe acet and an additiona rabe of returnon the hs lae a lows the lesser to use the aet but does not glve the right to own the aset.Such contracts can becancded bafarethe agrsemert ps. The seler of the proparty, called the Iese, mmedately resthe purchase price from the lessar 0 0 0 Leasing ls often referred to as aff-baunce-sheet ai asets do not aways show up on the bslance sheet because the aets and capital needed tn acquire fwed Acurdingto Finandal Acmuting Standards Board FAS3] Statement No. 13, which of the fullowing statements is true about 1 ases tat must be capitalzed? O Leased ashold be reported asfed aets on the balance sheet O The presert value of future lase payments shouild be reportedason the bslance sheet Different companies or indvidusls offerdifferent temsforleasecontracts. An example of one such lsasecontract wiro lte. txpanding ard n ,ds new fodity, but t does nct "art to add more dsht to ts balance sheet. Wisrocreated a subs diary to buy the new fadlty. It pansonfinancingwth deht from financial insttutionsard very small partrtage of wirosequty ownership. wisro then leases the proparty from ts subs diary to treat lkean operating lea Identy the type o lase described in the preceding example O Synthebclse O Combinstan lse