Question 2 Which of the following statements are TRUE? 1. All leases with noncancelable lease terms greater than 12 months are recognized on the balance sheet. II. When the lessee classifies a lease as an operating lease, the lessor also classifies the lease as an operating lease. III. When the lessee classifies a lease as a finance lease, the lessor also classifies the lease as a finance lease. O I and III O I, II and III O I only II and III O I and II Question 3 Which of the following is not a lease classification test