Asked by
Mariela Campos
on Oct 28, 2024
Verified
When a lessee makes periodic cash payments for a capital lease, which of the following accounts is increased?
A) Lease Rental Expense
B) Leased Equipment
C) Capital Lease Obligation
D) Interest Expense
Capital Lease Obligation
A lease classified as a financial transaction where the lessee essentially buys an asset and borrows the funds through a lease.
Periodic Cash Payments
Regular financial payments made over a stipulated period, such as dividends or loan repayments.
- Acquire knowledge on the differences between operating leases and capital leases and how they influence financial statements.
Verified Answer
LU
Learning Objectives
- Acquire knowledge on the differences between operating leases and capital leases and how they influence financial statements.
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