Question

A single lease expense is recognized on the income statement for

Answer 1

Answer: an operating lease.

Step-by-step explanation:

Lease payments are considered as an operating expenses and are typically expensed on the income statement. The asset is not owned by the firm and, therefore, the asset does not show on the balance sheet therefore, the firm does not assess its depreciation.

An entity recognizes the single lease expense from the operating lease. On the expense side, the single lease cost is recognized in an income statement.

Answer 2

For an operating lease

Step-by-step explanation:

Operating leases are simply expensed in the period in which they occur. There is no finance cost portion relating to the lease and the amount payable is recognised as an expense in the income statement for the period for which it's relevant.