A capital (or finance) lease and operating lease are recceded differently on the balance sheet, but their effect on the income statement is the same.-Do you agree? Explain OA. They are recorded deret y on botte balance sheet and the norme statement. Tecapital lease .s not placed on the balance sheet while the operat glease es einboth an asset and a labay The O B Yes while capital 4or financing) leases and operating leases are both recorded he same on balance sheet, neither have any effect on the norme statement. ncome statement treatment diters because the entre lease payment is treated as operating expense for a capital lease, while the amortization of the leased asset and the interest on the lease lability comprise the expense for an operating lease O G. No. They are reoorded differently on both the balance sheet and the income staement The operating lease is not placed on the balance sheet while the capital (or finance) lease resuts in both an asset and a latary The income staterert treament diners because the entire lease-yment-treated as rent expense for an operating lease, while Panortizator of the leased asset and liability comprise the expense for a capital (finance) lease meed on ne le O D. No. A captal(or finance) lease and an operating lease are recorded the same on the balance sheet and nether have any eflect on the inoome statement