For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the lease is classifi ed as:A . a sales-type lease.B . an operating lease.C . a fi nancing lease.

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

Q: A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or…

A: Explain the criteria for defining the lease as capital lease or operating lease: As per the notes…

Q: uestion: True or False

A: Step 1 In lease accounting, in any model adopted by the lesser or lessee for its accounting of…

Q: The situation which would normally lead to a lease being classified as a finance lease include all…

A: Lease contract can be defined as an agreement between two parties, lessor and lessee. It is contract…

Q: Explain when and how a lessee accounts for a lease by the short-cut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean,…

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: In computing depreciation of a right-of-use asset, the lessee should subtract O a guaranteed…

A: The answer is option (a.) [ i.e, A gauranteed residual value & depreciate over the term of the…

Q: Explain when and how a lessee accounts for a lease by the shortcut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: The residual value is the estimated fair value of theleased property at the end of the lease…

A:

Q: A lease agreement whereby the lessee recognized rent expense which is always equals to the rent…

A: The lease is a type of agreement between the lessor who is the asset owner and the lessee who takes…

Q: Rent received in advance by the lessor in an operating lease should be recognized as revenue

A: Concept used :

Q: A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an…

A: Introduction: Leasing is a mechanism by which the company may receive certain capital assets for…

Q: A leased asset under capital lease is disclosed on the balance sheet at its O present value O…

A: Capital lease means a lease where lessor has given right to use the assets to lessee  which cover…

Q: Which of the following is a criterion for classifying a lease for a lessee as a finance lease? The…

A: Answer: Option 4 - All of the above. Reason: If a lease meets one or more of the following criteria,…

Q: A lessee with a lease containing a bargain purchase option should depreciate the leased asset over…

A: A lesseewith an lease containing a bargain purchase option should depreciate the leased asset over…

Q: In an operating lease, rent collected in advance by the lessor should be treated O prepaid expense…

A: Solution: In an operating lease, rent collected in advance by the lessor should be treated…

Q: Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer…

A: The question is related to Accounting for Lease.

Q: A(n) is a contract for the use of an asset for a period of time without having to buy the asset. Oa.…

A: lease: lease is a contract  to buy the right to use the asset for particular period of time on…

Q: In accounting for a Type B lease, how are the lessee’s and lessor’s income statements affected?

A: When accounting for finance lease/ Sales type lease, lease payments are made during the term of…

Q: Which of the following is most likely a lessee’s disclosure about operating leases?A . Lease…

A: Operating lease: In operating lease ownership cannot be transferred.

Q: Which one of the following definitions is/are correct? I. A lease between a lessor and the…

A: 1) Incorrect: Direct lease is the lease between manufacture or dealer(which is lessor) and user…

Q: In finance lease, the amount recorded as asset is the lower amount between: a. the fair value and…

A: Lease is a contract between two parties in which one party provides its asset for use to another…

Q: his type of lease involves recognition of a manufacturer’s or dealer’s profit or loss on the…

A: Step 1 In a sales-type lease, the lesser is assumed to be selling a product to the lessee, which…

Q: hen a lease transfers ownership to the lessee by the end of the lease term, the underlying asset is…

A: Solution: As per IAS 17, "If there is no reasonable certainty that the lessee will obtain ownership…

Q: Assume a lessee leases equipment and insists on terms that qualify it as an operating lease, barely…

A: In simple term lease means it was a specific contract or agreement between the two parts to use the…

Q: For a lease that transfers ownership of the property to the lessee by the end of the lease term, the…

A: Lease represents the agreement among two parties known as lessee and lessor where the lessor…

Q: At the beginning of a Type B lease, the lessee will record what asset and liability, if any?

A: Type B lease implies to the lease in which insignificant portion of the useful life of the asset is…

Q: In calculating the amortization of a leased asset, the lessee should subtract a   Select one: a.…

A: Amortization- Amortization refers to spreading payments over manifold periods. The word is used for…

Q: Payments on an operating lease will appear:  A. In the profit and loss account as an expense B. In…

A: Lease agreement is a type of agreement between two parties, in which one party provides its assets…

Q: . In a lease that is not classified as a manufacturer's lease, initial direct cost is  a. added to…

A: Solution: As per accounting standards related to lease, Initial direct costs are often incurred in…

Q: In accounting for a Type A lease, how are the lessee’s and lessor’s income statements affected?

A: To state: how the lessee’s and lessor’s income statements are affected by finance lease/sales-type…

Q: n a finance lease. Are the components used in computing the right of use asset all similar to the…

A: Right Of Use Asset: It refers to  value of right to use an asset by the lessee under a lease…

Q: and the corresponding lease obligation did n malance sheet. Today, though, the situation ha ise all…

A: Lease can be of two types. Operating lease Finance Lease   Finance Lease is a lease wherein all…

Q: Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property…

A: Lease refers to the contract that outline the terms where one party of the contract agrees to rent…

Q: Explain the accounting involved in applying the operating lease method by a lessor.

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

Q: Occasionally, a lease agreement includes a guarantee by the lessee that the lessor will recover a…

A:

Q: statements is correct related to lease

A: Option "a" and "b"  are incorrect because it deals with depreciation of leased asset, not lease.…

Q: Initial direct costs incurred by the lessor under a sales-type lease should be a. Deferred and…

A: Initial direct cost refers to the cost that Related directly with the completing a lease…

Q: If a lease term is more than 80% of the asset’s life and the leased property is transferred from the…

A: Answer: The given statement is True.

Q: Which of the following is true regarding IFRS 16?      a. Lessors shall recognize assets held under…

A: As per IFRS16, Leases Lessor will account lease as operating lease or finance lease.

Q: On the lessor’s accounting, which of the following situations would prima facie lead to a lease…

A: Solution: On the lessor’s accounting, following situations would prima facie leas to a lease…

Q: g lease, the lessor recognizes a ____________ when the cumulative rental income is lower than the…

A: An operating lease is a contract that allows you to use an asset without giving up ownership of it.…

Q: A lessor has entered into a lease agreemen nssee to classify the lease as a capital leas collection…

A: The answer has been mentioned below.             Note: Attempting the first question only. kindly…