USGAAP and IFRS Provide Criteria for Distinguishing Operating Leases from Capital

Multiple Choice

U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is true?

A) Firms cannot currently apply the fair value option to capital leases.
B) When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.
C) When the lessee enjoys the benefits and bears the risk, the lease is a capital lease.
D) IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk.
E) all of the above