11 true or false 0.5 points operating leases are reported on the balance sheet at an amount equal to the…

11 true or false 0.5 points operating leases are reported on the balance sheet at an amount equal to the present value of the future cash flows. true false

11 true or false 0.5 points operating leases are reported on the balance sheet at an amount equal to the present value of the future cash flows. true false

Answer

Brief Explanations:

Operating leases are not reported on the balance sheet at the present value of future cash flows. Under accounting standards (e.g., ASC 842 for US GAAP and IFRS 16), operating leases are recognized on the balance sheet as a right - of - use asset and a lease liability. The lease liability is measured at the present value of the lease payments, but the statement in the question is incorrect in its general description of operating leases on the balance sheet.

Answer:

False