Question: Generally accepted accounting principles require that certain lease agreements be accounted for in similar fashion as purchased assets. The theoretical basis for this treatment is

Generally accepted accounting principles require that certain lease agreements be accounted for in similar fashion as purchased assets. The theoretical basis for this treatment is that a lease of this type

________.

Provides the use of the leased asset to the lessee for a limited period of time

Must be recorded in accordance with the concept of cause and effect

Effectively conveys all of the benefits and risks incident to the ownership of property

Is an example of form over substance

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