Under the Capital Method of Accounting for Leases the Excess

Multiple Choice

Under the capital method of accounting for leases the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor

A) In increasing amounts during the term of the lease
B) In constant amounts during the term of the lease
C) In decreasing amounts during the term of the lease
D) After the cost of leased property has been fully recovered through rentals