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Which of the Following Regarding Financing Leases and Operating Leases

Question 24

Multiple Choice

Which of the following regarding financing leases and operating leases under lessors and lessees is not true?


A) The lessor model requires that most leases be recognized as financing leases
B) The lessor model requires a relatively long-term leases-usually those more than one year in duration- would be recorded as an operating lease.
C) The lessee model uses a "right to use" concept deal with financing leases
D) The lessee model records operating lease payments as an expense when paid.

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