Question
Which of the following is true? a. In an operating lease, the leased asset and the lease liability must be reported in the balance sheet.
Which of the following is true? a. In an operating lease, the leased asset and the lease liability must be reported in the balance sheet. Therefore, no expense is recognized in the income statement. b. In a capital lease, the leased asset and the lease liability must be reported in the balance sheet. Therefore, no expense is recognized in the income statement. c. Although the total expense recorded over the lease period is the same for both types of leases, there are differences in the expense recorded in each period. d. The total expense recorded in each year is the same for both types of leases.'
why the answer is C?
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