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Assume a leesee leases equipment and insists on terms that qualify it as an operating lease,...

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Accounting

Assume a leesee leases equipment and insists on termsthat qualify it as an operating lease, barely escaping thequalification as a capital lease. Discuss the impact that such anoperating lease has on financial statements and related financialinformation as compared to the effect that a capital lease wouldhave.
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Operating Lease It is a contract in which the lessor gives right to use an asset to the lessee It is called True Lease Accounting of an operating lease is very simple Lessee recognizes an expense    See Answer
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