In accounting for operating leases, how are lease payments reflected in the income statement under US GAAP?

In the context of US GAAP, lease payments for operating leases are recorded as an operating expense on the income statement. This treatment aligns with the characteristic of operating leases where the lessee does not assume the risks and rewards of ownership of the asset. Instead, the lessee simply pays for the right to use the asset for a specified period.

By recording lease payments as an operating expense, the financial statements reflect the cost of using the asset in the period in which it contributes to operations. This approach helps to provide a clearer picture of the company's operational costs and profitability for that reporting period, making it easier for users of financial statements to assess performance.

Other options do not accurately represent how lease payments for operating leases are treated. Accumulated comprehensive income relates to certain items in equity rather than operating expenses. Ignoring the lease payments until termination does not align with accounting principles, as it would misrepresent the ongoing costs incurred during the lease term. Lastly, representing lease payments as a capital expense would imply that the asset is owned, which contradicts the nature of operating leases.