Howell corporation, a publicly traded corporation, is the lessee in a leasing agreement with brandon inc. to lease land and a building. if the lease contains a bargain purchase option, howell should record the land and the building as a(n)a. operating lease and capital lease, respectively.b. capital lease and operating lease, respectively.c. capital lease but recorded as a single unit.d. capital lease but separately classified.

The correct answer is Identify the conceptual framework within which accounting standards are developed.

Explanation:

The Financial Management Concepts Statement is a document issued by the Financial Accounting Standards Board (FASB) that covers general concepts of financial information. FASB is the organization that establishes the accounting standards and guidelines that make up GAAP. The purpose of the SFAC document is to provide an overview of accounting concepts, definitions and ideas. It is considered a prelude to the Financial Accounting Standards Statement (SFAS).