Under an operating lease:

Note: Select all that apply.

Check All That Apply

The lessee reports amortization expense and interest expense separately in its income statement.

The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.

The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement.

The lessee reports lease expense on a straight$-$line basis and the lessor reports lease revenue on a straight$-$line basis over the lease term.

Which of the following describe the criteria that must be met for a company to treat a lease as a short$-$term lease?

Note: Select all that apply.

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$$ The lease term is twelve months or less.

The lease term $($including any options to renew or extend$)$ is twelve months or less.

The lease does not contain a purchase option that would extend the term beyond twelve months.

The lease does not contain a purchase option that the lessee is reasonably certain to exercise, which would extend the term beyond twelve months.