Given Its Importance, How Does the Accounting Profession Determine Whether

Multiple Choice

Given its importance, how does the accounting profession determine whether a lease is an operating lease or a purchase capital lease?

A) whether the item being leased is a capital asset or not
B) whether title is likely to pass at the end of the lease period
C) by observing what ledger account the transaction was recorded in
D) by asking whether the asset is to be used short- term or long- term
E) by determining the intentions of the lessee