All leases for financial reporting purposes are treated as either capital (finance) leases or operating leases. The

Question:

All leases for financial reporting purposes are treated as either capital (finance) leases or operating leases. The effects of the two reporting techniques on the financial statements differ substantially. From the perspective of the lessee, prepare a chart that lists the line items reported on the

(a) Income statement,

(b) Balance sheet

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...