Capital Leases Are Rental Agreements of Which

Multiple Choice

Capital leases are rental agreements of which

A) periodic rental payments are recorded as rental revenue on the asset owner's income statement.
B) the contractual arrangements are similar to a purchase in all respects.
C) the period of the lease is generally a very small portion of the leased asset's useful life.
D) the lessee desires to have rights to use the asset but not ownership of such asset.