Q3 which of the following statements are true n and represent differences between Finance leases and operating leases (choose all that apply).

1. For finance leases the ROU Asset and lease liability are recorded for the present value of the lease payments but for operating leases the ROU Assets and lease liability are recoded for the future value of the lease payments

2. For finance leases the annual amortization of the ROU Asset is constant over the lease term but for operating leases the annual amortization of the ROU Asset increases over the lease term.

3. For the Finance leases the annual interest expenses decreases over the lease term, but for operating leases annual interest expense is constant over the lease term

4. For Finance leases an ROU Assets and a Lease Liability are recorded, but for Operating Leases there is no recognition of assets or liability on the financial statements