Question

Content area a leased asset will appear on the balance sheet as a long-term asset. true false'

Answer 1

The given statement is false. The liability for a leased asset should be shown separately in the balance sheet as a current liability or a long-term liability as the case may be.

What is leased asset?

A Leased Asset exists as an asset leased by the owner to another party in return for money or any other favor. While leasing an asset, the owner penetrates into a contract permitting the other party the temporary use of an asset.

Long-term assets exist as investments in a company that will benefit the company for many years. Long-term assets can contain fixed assets such as a company's property, plant, and equipment, but can also contain intangible assets, which can't be physically touched such as long-term investments or a company's trademark.

Hence, The given statement is false. A leased asset will appear on the balance sheet as a long-term asset. Revising depreciation estimates involves the amounts of depreciation expenses recorded in past periods. Land acquired as speculation exists reported under Investments on the balance sheet. The liability for a leased asset should be shown separately in the balance sheet as a current liability or a long-term liability as the case may be.

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