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STatiana [176]
3 years ago
12

Frank the earth, llc signed a three-year lease for office space. This lease is considered an what?

Mathematics
1 answer:
leva [86]3 years ago
6 0

Answer: Long-term Liability

Step-by-step explanation:

This question relates to the classification of the lease above in accounting.

A long term liability is a payment that is owed by a company for a period lasting more than a year.

When a lease is for more than a year as is the case here, you take the present value of the lease and consider that amount to be a long term liability because it would represent an amount that the company is to pay for more than a single period.,

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