Ask Question
BusinessBusiness
5 May, 06:39

The classifications of a lease by the lessee area. operating and finance leases. b. operating, sales, and finance leases. c. operating and leveraged leases. d. None of these answers are correct.

+2
Answers (1)
  1. 5 May, 08:29
    0
    The correct answer is letter "A": operating and finance leases.

    Explanation:

    An operating lease allows the lessee to possess an object but not to own it. The lessee is to return the leased asset after a determined term agreed with the lessor. Operating leases are considered as renting for accounting purposes implying the transactions incurred as a result of the operating lease are not reflected on the company's Balance Sheet.

    A financial lease carries the option of transferring ownership to the lessee after the term ends. How it is recorded on the Balance Sheet depends if the transfer is made or not.

    Both types of leases represent the classifications of a lease by the lessee.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The classifications of a lease by the lessee area. operating and finance leases. b. operating, sales, and finance leases. c. operating and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Char and Russ Dasrup have one daughter, Siera. who is 16 years old. ln November of last year, the Dasrup's took in Siera's 16 year oldfriend. Angela. who has lived with them ever since.
Answers (1)
In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems. and in the long run inflation and unemployment are positively related. unemployment and inflation are negatively related.
Answers (1)
If the average variable cost of producing 5 costumes in kira's costume shop is $50, and the fixed cost of the shop is $100. what is the total cost for 5 costumes?
Answers (1)
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $111,000. At the end of its five-year service life, it is estimated that the van will be worth $11,400.
Answers (1)
Megan has a one hour gap in her course load for the fall semester. There are two courses available for her to take at that time: reading piano sheet music and beginning rock climbing. She does not have any experience with piano or rock climbing.
Answers (1)
New Questions in Business
Match the business with the appropriate cost system (s) for that business using the number of the cost system where 1 = job order costing, 2 = process costing, and 3 = activity-based costing. a. Ketcher, Tryer, and Friar, attorneys-at-law b.
Answers (1)
Solemon Company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solemon wants to earn a targeted profit of $3,600, how many units must be sold?
Answers (1)
Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832
Answers (1)
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Home » Business » The classifications of a lease by the lessee area. operating and finance leases. b. operating, sales, and finance leases. c. operating and leveraged leases. d. None of these answers are correct.
Sign Up Forgot Password?