What is meant by Non-Cancellable lease?

Q: Define Lease Revenue.

A: A lease is an agreement between two parties under which one party agrees to provide the asset and…

Q: What is non-tax-oriented lease?

A: Non- tax Oriented lease: The lease where the lessor cannot avail tax exemptions for the capital…

Q: Describe the effect of a “bargain-purchase option” onaccounting for a capital lease transaction by a…

A:

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: Why we will have a residual value in an operating lease?

A: Residual value is an estimated value of the asset at the end of lease term. In operating lease, we…

Q: What is guideline lease?

A: Guideline Lease:   A tax lease was drawn up under IRS models or "guidelines" to decide the…

Q: What is a sale-and-leaseback transaction?

A: Sale and leaseback is a deal in which the owner of an asset trades an asset, typically real estate,…

Q: How does a leveraged lease differ from a nonleveraged lease?

A: A leveraged lease is an agreement that is partially financed by the third party creditor. In this…

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: What are the differences between capital leases and operating leases?

A: Solution:- Differences between capital leases and operating leases as follows under:-

Q: What is a synthetic lease?

A: The synthetic lease is a type of arrangement wherein the Parent company creates a separate entity…

Q: Explain Lease-versus-Own Analysis?

A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…

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 is the value of the lease?

A: Value of Perpetual annuity = PMT/r PMT is the monthly payment r is the monthly compounded rate.…

Q: Define synthetic lease

A: A synthetic lease is an arrangement among a company and a special purpose entity. It produces to…

Q: What do you think is the main difference of accounting for lease on the part of the lessee and…

A: Lease is regarded as the contract between two parties those to use the asset of the owner by another…

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 the difference between a tax-oriented lease and a nontax-oriented lease?

A: A tax-oriented lease: A tax-oriented lease, occasionally named a true lease, which offer the lessor…

Q: Does a lessee have an option not to separate lease and non lease components?

A: Lease: A lease or a lease agreement is a binding contract between two parties that dictates…

Q: What are the classifications of lease?

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

Q: When can a lease create both an asset and a liability for the lessee?

A: Lease is an agreement between two persons in which one grants the right to another to use a…

Q: Explain the difference in lessor income statement presentation for a sales-type versus operating…

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

Q: Who are the two parties to a lease transaction?

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

Q: From a lessee perspective, distinguish between a finance lease and an operating lease.

A: Lessees have available two lease accounting methods: (a) the operating method and (b) the…

Q: Define Lease payments.

A: Lease is an agreement in which the lessor grants the right of use or possession of its asset to a…

Q: distinguish between a fi nance lease and an operating lease from the perspectives of the lessorand…

A: Difference between a finance lease and an operating lease from the perspectives of the lessorand the…

Q: Is there a need to amortize deferred rent income/unearned rent income in an operating lease?

A: There are two type of lease which are, (1) Operating lease  (2) Finance lease In operating lease,…

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 the classification of operating lease?

A:

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: Why do we need to differentiate lessor accounting for direct financing lease and sales-type lease?

A: Lease contract: Lease contract is an arrangement occurs between two individuals or entities through…

Q: What are the primary benefits to a lessor of entering into a lease arrangement

A: The primary benefits to a lessor of entering into a lease arrangement will be explained:

Q: What is meant by “loss to lease”? Explain?

A: Loss to lease: It is the term used in Real Estate in leasing of property mainly apartment complexes,…

Q: Explain the distinction between a direct-financing leaseand a sales-type lease for a lessor.

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Q: Explain the Uncertainty in Lease Transactions.

A: Uncertainty means something which is not certain and unusual in nature. There are various types of…

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: Define sale-and-leaseback

A: sale-and-leaseback

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: When are initial direct costs recognized in an operating lease? In a direct financing lease? In a…

A:

Q: What is a combination lease?

A: Combination leases is also one of the type of leasing & is considered to be customized form of…

Q: What are the ways in which the accounting for the lease is affected?

A: Leases are a special item in accounting. There are mainly 2 types of lease: 1. Operating and 2.…

Q: Which are the Factors Affecting Own-versus-Lease Decisions?

A: Owning an asset involves purchase of the asset using own or borrowed sources of funds, whereas…

Q: Distinguish between a Type A lease and a Type B lease.

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

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: In accounting for an operating lease, how are the lessee’s and lessor’s income statements affected?

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

Q: What are the characteristics of operating lease?

A: Definition: Operating lease: Operating lease is the type of lease in which the lessor allows the…

Q: What is the main purpose of the lease disclosures required of the lessor and lessee?

A: The Answer:

Q: Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed…

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

Q: What discount rate should be used to evaluate a lease? Why?

A: Lease may be defined as the legal contract between two party's lessor and lessee, were one party…

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 operating lease?

A: Operating lease: An operating lease is an agreement to use and operate an asset without ownership.…

Q: What is lease assignment? What is subletting? Explain at least one main difference between these…

A: In the world of finance in general and letting out of properties in particular the concepts of lease…

Q: What is a short-term lease? Describe lessee accounting for a short-term lease.

A: Short-term LeaseThis is a type of leasing which has a maximum lease term ranging from 1 year or…

Q: What are executory costs? How are they accounted for by the lessee in a capital lease when paid by…

A: Executory costs are the costs related with ownership of an asset which includes maintenance…

Q: Describe the concept of lease.

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

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.