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1. A capital lease must be recorded on the balance sheet as a capital asset with an associated liability.
2. Assets leased under capital lease contracts.
3. What are the accounting criteria for a capital lease?
4. A capital lease pays for property over the term of its useful life.
5. In a capital lease, the lessee capitalizes the leased asset and reports a lease liability.
6. A capital lease is long - term , noncancelable, and similar to an installment purchase of the leased asset.
7. A lease agreement that does not meet the criteria for a capital lease must be classified as an operating lease.
8. This section lists long-term debt owed to banks or other creditors and any obligations under capital leases.
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