When a lease for an asset is signed for a long$-$term,

Question $11$ options:

$1)$

no assets or liabilities are recognized on the balance sheet.

$2)$

an asset and liability are recognized on the balance sheet.

$3)$

an asset is recognized on the balance sheet and a rent expense is recorded in the income statement.

$4)$

a liability is recognized on the balance sheet and a rent expense is recorded on the income statement.