CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Relative to a capital lease, an operating lease will result in ______.
A. higher total assets and reported liabilities
B. higher interest expenses early in the lease
C. higher profits reported in the early years of the lease

User Contributed Comments 2

User Comment
americade For the lessor or lessee?
mtcfa For the lessee... because in the early years a capital lease has both interest an d relatively high depreciation expense.
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