Differentiate between leasing and financing. Leasing Financing

Q: Describe the environment related to leasing transactions.

A: Lease:

Q: Describe the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type - Sale type leases - Bargain purchase option…

Q: Why is it appropriate to compare the cost of lease financing with that of debtfinancing?

A: Cost of lease financing is the cost that is bear by the lessee who have owned the right from the…

Q: lessee

A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…

Q: When is Leasing used?

A: Fixed assets are those type of assets which are being held by the business for longer period of…

Q: What are the types of agreement related to sale-leaseback agreement?

A: Sale and Leaseback Agreement is a kind of financial transaction. This is a situation that arises…

Q: Explain the Remeasurement of the Lease Liability...

A: Lease Liability:  In order to determine the lease liability, lease payment information should be…

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: gent liab

A: Contingent Liability A contingent liability is an obligation that may arise as a result of the…

Q: Distinguish between a Type A lease and a Type B lease.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Define each of the following terms:e. Guideline lease

A: Introduction: A lease is nothing but a contract between lessor and a lessee. The lessee is entitled…

Q: Define Direct financing lease.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What is lease assignment? What is subletting? Explain at least one main difference between these…

A: In the world of finance in general and letting out of properties in particular the concepts of lease…

Q: Explain the Existence of Ground Leases?

A: ntroduction: The land lease determines who owns the land, and who owns the house, as well as…

Q: What is financial lease?

A: Lease refers to the contract under which one party agrees to rent a property that is owned by…

Q: Discuss the accounting and reporting requirements for leasing contracts with unique characteristics.

A: Given : This question explains about the accounting and reporting requirements for leasing contracts…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.