alleryStart learning →A lessor presents an asset given on operating lease under
AReceivables
BFixed assets
CInvestments
DInventories
Answer & Solution
Correct answer: B. Fixed assets
Unlike a finance lease, the asset stays on the lessor's balance sheet as a fixed asset.
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Related questions
Leaving a finance lease off the lessee's balance sheet understates obligations and distortFor a lessee, the amount of a residual value guarantee is theA lessor on finance leases also discloses accumulated provision forWhich must a lessor disclose for finance leases?In a finance leaseback, the carrying amount is written down only if there isLeaseback below fair value, loss offset by cheap rentals, isAsset sold at fair value Rs 6 lakh, carrying amount Rs 8 lakh, operating leaseback. Loss rOperating leaseback above fair value: the excess is