Distinguish between operating leases and financial leases. Would a firm be more likely tofinance a fleet of trucks or a manufacturing plant with an operating lease? Explain.

Q: what is One of the advantages of leasing

A: A lease can be defined as a contract where a party, being the owner (lessor) of an asset (leased…

Q: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: Which of the following dictates how the revenue from the sale of production will be distributed:

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

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: Capitalizing a lease means that the firm issues equity capital in proportion to its current capital…

A: The lease is the type of agreement that is for the property used to rent a house. In this one…

Q: True or false explain

A: A lease is a contractual agreement between the lessor and lessee. The owner is paid by the user…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: What do we mean by overage in a retail lease agreement? How might it be calculated?

A: Overage on retail lease contract and its computation as follows: Retail lease contracts show a least…

Q: Are there advantages of leasing its equipment that HG should consider?

A:

Q: A lease is a financing instrument used by an entrepreneur to acquire assets for the…

A: Leases – It is defined as a contract that conveys the right to control the use of an identified…

Q: Explain the accounting for operating leases.

A: The accounting for an operating lease assumes that the lessor owns the leased asset, and the lessee…

Q: What are the pre-requisites of having a successful finance leasing?

A: Finance  leasing is the process wherein the finance company owns the asset legally throughout the…

Q: Differentiate between an operating lease, acapital (or financial) lease, and a sale andleaseback…

A: Answer: The term operating lease would be significantly shorter than the rented asset’s life. And in…

Q: What are some features found frequently in office leases?

A: A lease is an agreement that sets out the terms and conditions on which the person promises the…

Q: Identify the CORRECT statement regarding the effect of lease on return on capital employed. Select…

A: Taking assets on lease is the best ways to save money which was supposed to be blocked if purchased…

Q: Why might refinancing be considered an alternative to a sale-leaseback?

A: Introduction: The given question is related to the concept of real estate finance and investments.…

Q: ease terms can be considered to be "significantly affected": a. when the terms are the same for…

A: Leases - It is contract between lessor and lessee wherein an asset is given to lessee in…

Q: Assuming that FASB Statement 13 and ASU2016-02 are working as they are supposed to work,should…

A: The Financial Accounting Standard Board (FASB) introduced a new accounting standard ( ASU…

Q: A mine operating company approaches an Islamic financial firm to obtain lease financing for some…

A: Given, Details about a mine leasing financial firm is about to lease some large and special…

Q: Weigh-in the advantages and disadvantages of leasing over debt financing in acquiring long-term…

A: Long-term assets are assets that will benefit the organisation for more than a year, whether they…

Q: Metheny Corporation's lease arrangements qualify as sales-type leases at the time of entering into…

A: Sale type leasing: An agreement created between the lessor and the lessee for an amount higher than…

Q: What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a…

A: First of all, let us understand the concepts of lessor and lessee. So essentially, a lessor is de…

Q: What is selling profit on a sales-type lease? How do we account for a sales-type lease with a…

A: Sales-type lease: Sales type lease in equivalent type of direct financing whereby the owner (lessor)…

Q: Explain the recognition of profit on a finance lease transaction for lessorswho are manufacturers or…

A: A lease can be defined as a contract or agreement that allows the lessee to pay a certain amount of…

Q: Which statement is correct in comparing capital leases to operating leases? a) A capital lease will…

A: Leases are usually of two types – capital leases and operating leases.   In a capital lease all…

Q: Under the FASB old lease standard,

A: Capital lease which is now also known as finance lease resembles financed purchases , the…

Q: Firms may or may not capitalize a financial lease. Question 11Select one: True False

A: A financial lease, also known as a capital lease, is a long-term lease agreement where the lessee…

Q: Briefly explain two disadvantages of sale and leaseback transactions

A: In a sale and leaseback, a business sells a structure that it both owns and occupies while also…

Q: cuss the advantages of lease financing.

A: Lease is kind of arrangement where the right to use of equipment can be obtained without much…

Q: In the lease versus buy decision, leasing is often preferable Oa. because the lessee may have…

A: Decision making is a process whereby an individual/organization decides on the course of action to…

Q: Why does a finance lease is economically similar to a purchase of the asset?

A: There are many similarities between purchase of a asset and Finance lease, such as: In a finance…

Q: What factors would tend to affect the value of a lease?

A: Lease is a contract between two parties in which one party lends its property or asset to the other…

Q: Able Equipment entered into an arrangement to provide M. T. Bin Wholesale’s data center with Able’s…

A: Lease:   It is an agreement between the owner of an asset and a tenant where the owner agrees to…

Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?

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

Q: .The initial direct costs of leasing * , O All of these answers are true with regard to the initial…

A: Initial direct cost of leasing:- It is the cost which is generally incurred by the lessor in…

Q: Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all…

A: GIVEN   Three different lease transactions are presented below for Carla Vista Enterprises. Assume…

Q: Compare and contrast a finance lease with an operating lease.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.