1. In an operating lease, the entry each year is to debit ______________and credit_______________ . 2. In a(n)________________ lease, the lessee records the leased property on his or her books as an...

1. In an operating lease, the entry each year is to debit ______________and credit_______________ .

2. In a(n)________________ lease, the lessee records the leased property on his or her books as an asset at the___________________ of future minimum rental payments.

3. One of the criteria for a capital lease is that the lease term equals or exceeds_______________ of the life of the property.

4. The lessor can pass the_______________ on to the lessee.