Operating Leases

Most leases are not going to be classified as operating leases because of changes made by which of the following government bodies?

IASB

For a lease to be classified as an operating lease, the lease term must be less than

75

For a lease to be classified as an operating lease, the present value of the lease payments must be less than

90

In addition to the lease criteria, which of the following is a characteristic and classification category for leases?

Benefits Tax

What type of account is used in the journal entry when an operating lease contains different payment amounts?

Cash

Which of the following financial statements shows the effects of an operating lease?

Statement of cash flow

What method is used to calculate the rent expense amount for operating leases when the payment amount changes?

Straight line

For a lease to be classified as an operating lease, a bargain purchase option

is not

An operating lease is considered a/an

off-balance sheet

lease, ownership of the asset must be retained by the lessor during and after the lease term.

operating