CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

In accounting for a lease transaction classified as a capital lease, over the term of the lease ______
A. the asset should be depreciated by the lessor in a systematic and rational manner.
B. the lease payments by the lessee constitute a payment for lease liability plus interest.
C. the gross sum of the lease payments equals the dollar amount that would have been paid by the lessee to purchase the property on the date of the inception of the lease.
Explanation: Lessees must make a payment that includes a payment on the debt outstanding as well as interest on the debt.

User Contributed Comments 2

User Comment
danlan A is for operational lease. C: gross sum is wrong, should be discounted sum.
steved333 DISCOUNTED sum...
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