Generally Accepted Accounting Principles require the recognition of the assets and liabilities related to leases in the general ledger in which of the following situations? Question 4 options: 1) All leases, regardless of the length of the lease. 2) Leases that extend more than one year and cover LESS than 75% of the economic life. 3) All finance leases, but not operating leases. 4) Only leases where the ownership is transferred from the lessor to the lessee at the end of the lease term. 5) Leases with multiple year payments, which when discounted to present value, are LESS than 90% of the fair value of the asset.

Generally Accepted Accounting Principles require the recognition of the assets and liabilities related to leases in the general ledger in which of the following situations? Question 4 options: 1) All leases, regardless of the length of the lease. 2) Leases that extend more than one year and cover LESS than 75% of the economic life. 3) All finance leases, but not operating leases. 4) Only leases where the ownership is transferred from the lessor to the lessee at the end of the lease term. 5) Leases with multiple year payments, which when discounted to present value, are LESS than 90% of the fair value of the asset.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 26E

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