Which of the following is not correct statement for accounting by the lessee? O a. The lessee records depreciation expense on the right-of-use asset. O b. The lessee recognizes interest expense on the lease liability over the lease term O c. The lease liability is computed as the present value of the lease payments. O d. The operating lease method is used to account for the lease.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following is not correct statement for accounting by the lessee?
The lessee records depreciation expense on the right-of-use asset.
O b. The lessee recognizes interest expense on the lease liability over the lease term
O c. The lease liability is computed as the present value of the lease payments.
O d. The operating lease method is used to account for the lease.
Transcribed Image Text:Which of the following is not correct statement for accounting by the lessee? The lessee records depreciation expense on the right-of-use asset. O b. The lessee recognizes interest expense on the lease liability over the lease term O c. The lease liability is computed as the present value of the lease payments. O d. The operating lease method is used to account for the lease.
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