All of the following statements correctly describes the recognition of operating leases EXCEPT: Review Later A lease liability is recognized on the balance sheet and represents the present value of all remaining lease payments. The interest expense is calculated based on the outstanding lease liability balance. The amortization expense of the right-of-use asset is calculated using the straight-line depreciation method over the lease term. The amortization expense of the right-of-use asset and the interest expense on the lease liability are recorded as a single item called lease expense on the income statement