CAF-6 · Chapter 3 · Question 14 of 15
A lessor under an operating lease should recognize lease income:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) On a straight-line basis over the lease term.
Explanation
For operating leases, lessors recognize lease income on a straight-line basis over the lease term unless another systematic basis is more representative of the benefit usage.
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