What Is Benefits of Long-Term Contracts?

Q: payback period?

A: Payback period is when the initial cash outflow is recovered via cash inflows

Q: What comprises a lessee’s minimum lease payments? What is excluded?

A: A lease is a contractual obligation under which one party (lessee) uses the assets or resources of…

Q: The ability to meet short term obligations is termed

A: A short-term liability is referred to as the financing obligation that being liable to an…

Q: What are some advantages to shortening the lease time?  What are some disadvantages?

A: Lease is a type of financing undertaken by a person (Lessee) to acquire right to use an asset for a…

Q: pay back period?

A: Pay back period = Number of years fully covered + (Remaining part of investment to be covered/Next…

Q: What is the concept of sale-leaseback agreement?

A:

Q: Why would a lease include a contingent payment provision? Explain.

A: Contingency payment provisions is a provision for a possible event or circumstance which is not…

Q: What are the advantages of lease?

A: A lease is a contract under the terms under which one party agrees to rent property owned by another…

Q: state the limitations of the payback pe

A: Answer : The payback period is the quantity of time needed for cash inflows generated by a project…

Q: Explain when does a contract meet the definition of a lease?

A: According to IFRS 16 a lease is defined as, "a contract, or part of a contract, that conveys the…

Q: equity-based compensation contracts.

A: Compensating employees with equity has become the best compensation plan for attracting talented and…

Q: What is meant by Short-term financing?

A: Finance refers to the study of money , currency as well as the capital assets.There are basically…

Q: Why the lease is considered a “short-term lease”?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

Q: what is fixed-price contract, and what are the benfit of chosing it

A: A contract where the price is fixed as negotiated by the parties is known as a Fixed Price Contract.…

Q: How is the payback period determined?

A:

Q: Describe Short-Term Obligations Are Expected to Be Refinanced.

A: Refinancing refers to the process where revival of interest rate, payment schedule and terms of…

Q: What are three similarities of a future contract and a forward contract?

A: Forwards are the contract made for the private placements while futures are traded under stock…

Q: What is difference between lease method and installment method?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

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: What is meant by the term payback period? How is the payback period determined? How can the payback…

A: Meaning: The payback period is the time required to earn back the amount invested in a particular…

Q: What are the different types of future contracts? Explain each.

A: Future contract is referred to as the contract, which is made between the two parties where the…

Q: What are the benefits to lessees of operating lease accounting?

A: Operating lease: The operating lease refers to the contract between two parties where one party…

Q: Describe what if Lease Terms are modified?

A: Lease Terms are the terms on which both lessor and lessee agrees to enter into a specific lease. It…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: what is payback period

A: Capital Budgeting: It is the planning process used to determine whether an organization invests in a…

Q: What is the Social Contract – its pros and cons

A: The social contract approach to industry refers back to the technique a organization chooses when it…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: What are the disadvantages of lease?

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

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: How do you think expense stops and CPI adjustments in leases affect the riskiness of the lease from…

A: INTRODUCTIONLease is a contract in which the right to use the asset is given by the lessor to the…

Q: What are the various types of long term liabilities? Name them.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What is the composition of lease Payments?

A: Lease is a kind of monthly rental payment made by the lessee to the lessor in return of the right to…

Q: What is the process of consideration of the payback period?

A: Payback period It computes the required time to recover back the project’s investment by way of…

Q: Can the present value of minimum lease payments differ between the lessor and lessee? If so, how?

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

Q: What is the difference between an operating lease and a financial,or capital, lease?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: Define Long-term contract

A: Meaning of Contract: An agreement between two private parties that creates mutual legal obligations.…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

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: How is the payback period is calculated?

A: Payback period is the amount or length of time taken by an investment to recover its cost.

Q: What if Lease Terms are Modified?

A: Lease terms is a contractual agreement or obligation that is prepared and signed by both lessor and…

Q: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: What is a loan amortization schedule, and what are some ways these schedules are used?

A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…

Q: What is the difference between a lease receivable and a net investment in the lease?

A:

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: What is meant by the term payback period?

A: The Payback Period helps to determine the extent of time required to recoup the initial cash outlay…

Q: what kind of account is contract fees

A: Definition: Revenues: Revenues are earnings from the operations of a business. The operating…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.