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Capital Lease vs. Operating Lease in Accounting

Instructions:

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

question 1 of 3

What is the correct amount for the liability in a capital lease?

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1. The total cash flow impact of a capital lease is:

2. By the lease term rule, which of these can be recorded as an operating lease?

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About This Quiz & Worksheet

Working through the quiz and worksheet lets you see what you know about capital leases vs. operating leases in accounting. The correct amount for the liability in a capital lease and how to apply the lease term rule are some of the topics on the quiz.

Quiz & Worksheet Goals

The goal of these assets is to test your knowledge of:

  • Finding the income statement impact
  • Determining the liability in a capital lease
  • How the lease term rule works
  • Total cash flow impact of a capital lease

Skills Practiced

  • Reading comprehension - ensure that you draw the most important details from the lesson on operating leases vs. capital leases
  • Information recall - access the knowledge you have gained about how the present value rule works
  • Interpreting information - verify that you can read information about how to apply the lease term rule to an operating lease and interpret it correctly

Additional Learning

Review more material by looking through the lesson, Capital Lease vs. Operating Lease in Accounting. You'll get to study more about:

  • Differences between capital and operating leases
  • How accounting for capital leases works
  • An example of accounting for operating leases
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