A lease agreement whereby the lessor shall recognized gross profit at inception of the lease
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- Under operating lease: Select one: a. Nome of the options O b. lessee report assets on balance sheet c. Lessor recognized rent expense d. lessee recognize rent revenueThis type of lease involves recognition of a manufacturer’s or dealer’s profitor loss on the transfer of the asset to the lessee. A. Operating leaseB. Sale and leasebackC. Sales type leaseD. Direct financing lease.A lease agreement whereby the lessee recognized rent expense which is always equals to the rent income recognized by the lessor at a given period of time. A. Operating lease B. Finance lease C Terminating lease D. Sale type lease
- A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor Select one: Account to be used by the lessee Right of Use Asset Account to be used by the lessor Lease Receivable a. Ob. Account to be used by the lessee Unearned Revenue Account to be used by the lessor Sales Revenue Account to be used by the lessee Lease Expense Account to be used by the lessor Interest Revenue d. Account to be used by the lesseO Lease Liability Account to be used by the lessor Amortization Expense Account to be used by the lessee Amortization Expense Account to be used by the lessor Interest Expense e.The lease transfers ownership of the property to the lessee at the end of the lease term Select one: a. Capital lease O b. operating lease c. direct lease O d. often objectiveAn amount paid by the lessee to the lessor in addition to the periodic rental which is treated by the lessor as an unearned rent income to be amortized over the lease term. a. Contingent rent b. Lease bonus c. Initial direct cost d. Security deposit
- A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an operating lease.C . either a capital or an operating lease.In a sale-leaseback transaction, the lease liability is equals to: A. PV of lease payments accruing to the lessor B. PV of lease payments accruing to the lessor plus any additional financing C. PV of lease payments accruing to the lessor less any prepayments D. PV of lease payments accruing to the lesseeThe difference of gross investment in the lease and net investment in the lease of the lessor is? A. Total amount of interest that the lessee shall recognized as interest expense over the lease term. B. Interest income at inception of the lease. C. Total amount of interest that the lessor shall recognized as interest income over the lease term. D. Initial direct cost.
- Under a capital lease: Select one: a. The lessee report assets on balance sheet O b. None of the options c. The lessee report rent expenses on income statement d. The lessor report rent expense on income statementA lease that involves a manufacturer’s or dealer’s profit is a(an):(a) direct financing lease.(b) finance lease.(c) operating lease.(d) sales-type leaseA lease agreement whereby the lessee recognized rent expense which is always equal to the rent income recognized by the lessor at a given period of time. Group of answer choices Terminating lease Operating lease Finance lease Sale type lease