Almost All Leases Lasting More Than a Year Must Be

Multiple Choice

Almost all leases lasting more than a year must be included in the balance sheet by reporting the

A) residual value as a liability.
B) present value of future lease payments as an asset and also showing this same amount as an offsetting liability.
C) undiscounted sum of future lease payments as an asset and as an offsetting liability.
D) undiscounted sum of future lease payments, less the residual value, as an asset and as an offsetting liability.
E) residual value as a fixed asset.