Question

Which of the following lease-related revenue and expense items would be recorded by a lessor if...

Which of the following lease-related revenue and expense items would be recorded by a lessor if the lease is accounted for as an operating lease?

Question 9 options:

Lease Revenue and Depreciation Expense

Interest Revenue only

Lease Revenue only

Depreciation Expense only
Business   Accounting   
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Answer #1

answer : Lease Revenue and Depreciation Expense

explanation

since the lessor is the owner of the asset who gives an asset for operating or using and get lease revenue from the lessee the lessor records revenue as lease revenue in his books .under the operating lease the lessor have the ownershi rights over the life of the asset so he will recods the depreciation as an expense in his books over the life of the asset .

lessor is a person who gives an asset for operating or using without transfering ownership rights .

lessee is a person who uses the lease asset on agreement

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