When a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue

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

A: Lease is an agreement between two parties whereby one party gives its asset for use to other party…

Q: ndicate all statements that are correct.   Select one or more: a. Net Income is higher at first…

A: The lease system is type of arrangement in which right to use of the assets is given by payment of…

Q: Lessors are required to account for lease receipts from operating leases as A. revenue, on a…

A: An operating lease is a contract that permits the use of an asset without transferring the ownership…

Q: Initial direct costs incurred by the lessor in connection with specific leasing activities as in…

A: Solution: Initial direct costs incurred by the lessor in connection with specific leasing activities…

Q: A lessee records a lease obligation with a credit to the obligation in the amount of . the total…

A: At the commencement date, a lessee initially measures the lease liability (obligation) at the…

Q: Lease bonus paid by the lessee in a short-term lease must be accounted by * O recognizing the lease…

A: Solution : lease bonus paid by the lessee in a short term lease must be accounted by correct answer…

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: The rent expense of the lessee maybe composed of the following: I.      Straight-line amortization…

A: Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a…

Q: Compared to using a fi nance lease, a lessee that makes use of an operating lease will mostlikely…

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

Q: nitial direct costs are immediately recognized as an expense by the lessor when the cost incurred in…

A: Lease agreement is the agreement in which a person acquires the right to use the asset of other at a…

Q: n amount paid by the lessee to the lessor in addition to the periodic rental which is treated by the…

A: Solution: Lease bonus in addition to the lease payment are considered as unearned rent income for…

Q: Justify the effect of additional payments on lease accounting, such as non-lease payments, initial…

A: This question argues about the impact on lease accounting of non-lease payments, initial direct…

Q: The rent expense of the lessee maybe composed of the following: I.      Straight-line amortization…

A: Lease rent are the payment to the lessor against the right to use the asset of the lessor by the…

Q: If deposit for lease contract was recorded as Rent Expense,

A: Rent deposit is the deposit made by the tenant to the landlord. Rent deposit will be held by the…

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: When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an…

A: A non-refundable lease bonus paid by a lessee on signing an operating lease is treated as deferred…

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

A: Introduction: Operating lease: Under the operating lease the owner ship of the Asset does not…

Q: a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue…

A: Step 1 Vendor records are lease records (credit) and the corresponding debit of cash or rent…

Q: Oa The Lessee recognizes a single Lease Expense on the Income Statement for a Finance Type Lease. Ob…

A: The answer for the true or false questions and relevant explanation are presented hereunder :…

Q: 31. In an operating lease, the lessor records Select one or more: a) Lease revenue only b)…

A: In operating lease, only the right to use assets is transferred to the lessee and the ownership of…

Q: In a lease that is recorded as a manufacturer’s or dealer’s lease by the lessor, interest revenue…

A: Manufacturers or dealers often offer to customers the choice of either buying or leasing an asset. A…

Q: In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: A manufacturer/dealer lessor is a lessor that either manufactures the leased asset or acquires the…

Q: It is that portion of the lease payments that is not fixed in amount but is based on a factor other…

A: Contingent rent is considered as a rental payment that varies with the future amount which is not…

Q: Which of the following cash flows is classified as an investing cash flow? A. interest portion of…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: For a finance lease, the lease obligation of the lessee would be reduced periodically by  a. the…

A: Solution: For a finance lease, the lease obligation of the lessee would be reduced periodically by…

Q: Under a capital lease: Select one: O a. The lessee report assets on balance sheet O b. None of the…

A: Lease means giving out the assets by the lessor to the lessee to use that asset in return for a…

Q: initial direct costs incurred in relation to a lease transaction is added to A)the cost of sales…

A: In lease accounting the initial costs directly incurred in a lease transaction are to be considered…

Q: differentiate calculations BETWEEN leasing payment at END-OF-THE YEAR and BEGINNING OF THE YEAR?

A: The lease payment calculations are different for the beginning of the period and end of period…

Q: carrying amount of the finance lease liability from the capitalization of a lease would be…

A: A lease agreement between the two parties in which the one party (known as finance company) is the…

Q: , What is the balance sheet value of the lease asset and the lease liability? 2 Why was the lease…

A: A debenture pays a regular interest rate or coupon rate return to investors

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 financing lease, “front loading” of lease expense and lease revenue occurs. What does this…

A: Finance lease: Finance lease is a parallel type of direct financing whereby the owner (lessor)…

Q: 3. For a finance lease, the lease obligation of the lessee would be reduced periodically by * a. the…

A: SOLUTION-   FINANCE LEASE INVOLVES TRANSFER OF RISK AND REWARDS , THE LEASED ASSETS IS RECORDED IN…

Q: Under an operating lease, the lessee recognizes a ____________ when the aggregate rental payments is…

A: Under an operating lease, the lessee recognizes a  Rent payable when the aggregate rental payments…

Q: For a finance lease, the lease obligation of the lessee would be reduced periodically by    a. the…

A: Solution:   For a finance lease, the lease obligation of the lessee would be reduced periodically by…

Q: A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and…

A: Accounting Entry Made by lessee Dr. Right of Use Assets Cr. Lease Liability   Accounting…

Q: When a lessee makes periodic cash payments for a finance lease, which of the following accounts is…

A: A lease is a contractual arrangement, whereby one party  (i.e., owner of the asset - Lessor ) grants…

Q: . The primary difference between a direct-financing lease and a sales-type lease is the amount of…

A: Lease is a contract or agreement between two parties in which one party provides it's asset for use…

Q: The rent expense of the lessee maybe composed of the following: I.      Straight-line amortization…

A: Here discuss about the details of rent expenses which are incurred at the time of inception of lease…

Q: An increase in interest income recognized for the period on a lease agreement will have the effect…

A: The amount of interest received during a certain time period is referred to as interest income. It…

Q: er IFRS 16, lessors are required to account for lease receipts from operation leases as    a.…

A: Solution: Under operation leases, ownership of assets remain the lessor and depreciation charges by…

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

A: Solution: Under a direct financing lease, the excess of aggregate rentals over the cost of the…

Q: In an operating lease that is recorded by the lessee, the equal monthly rental payments shall be?…

A: Solution: In an operating lease that is recorded by the lessee, the equal monthly rental payments…

Q: Annuity due calculations are common when dealing with _____.   a. rental contracts   b. cash…

A: Annuity due(AD) can be calculated by multiplying ordinary annuity(OA) with 1+ Interest rate(r)

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.