Economics · Accounting Principles
A business leases a motor vehicle for use in operations, paying rentals over a 36-month contract. The accountant states that the vehicle must be included under non-current assets in the statement of financial position even though the business does not legally own it. Which accounting concept justifies this capitalization?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Substance over form✓
- 2Consistency
- 3Accruals
- 4Materiality
Correct answer
Substance over form
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