Impact of Capital Leases on Financial Statements

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Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

In a capital lease, if you did not want to show the leased asset on your books, which party would you want to be?

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1. In a capital lease, the lessee _____ its accounting books.

2. _____ expense is recorded to reduce the leased asset's book value.

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About This Quiz & Worksheet

How much do you know about the impact of capital leases on financial statements? Find out and review how capital leases work by using the quiz and worksheet.

Quiz & Worksheet Goals

You can see how much you know about:

  • Type of expense that is recorded to reduce the leased asset's book value
  • How each lease payment is composed
  • The lessee in a capital lease
  • Party that doesn't show the leased asset on the books

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on capital leases and their impact on financial statements
  • Information recall - access the knowledge you have gained about the role of the lessee in a capital lease
  • Interpreting information - verify that you can read information about how to calculate interest portion of a payment and interpret it correctly

Additional Learning

Gain more knowledge any time by using the lesson called Impact of Capital Leases on Financial Statements. Goals you can complete include:

  • Identify the different types of leases
  • Determine how to record a capital lease
  • Review the different impacts of a capital lease
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