Asked by
Aaftab Singh
on Nov 27, 2024
Verified
When accounting for an operating lease,a liability is recognized when the lease is signed by the lessee.
Operating Lease
A lease agreement allowing a lessee to use an asset temporarily without ownership, typically involving regular payments for a short to medium term.
Liability
Financial obligations or debts that a company or an individual owes to others, which are expected to be settled in the future.
- Clarify the distinctions between capital and operating leases and how they affect financial statements.
Verified Answer
RB
Learning Objectives
- Clarify the distinctions between capital and operating leases and how they affect financial statements.
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