Crystal Corporation recorded a lease payment as follows: Dr. Rent expense Cr. Cash Crystal must have a(an) Select one: a. Finance lease. b. Operating lease. c. Leveraged lease. d. Direct finance lease.

Crystal Corporation recorded a lease payment as follows: Dr. Rent expense Cr. Cash Crystal must have a(an) Select one: a. Finance lease. b. Operating lease. c. Leveraged lease. d. Direct finance lease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

Crystal Corporation recorded a lease payment as follows:

Dr. Rent expense

Cr. Cash

Crystal must have a(an)

Select one:

a. Finance lease.

b. Operating lease.

c. Leveraged lease.

d. Direct finance lease.

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