1. a) Provide the definition of a lease and describe the two types of leases.

Q: For the lessor to account for a lease as a sales-type lease, the lease must meet:

A: A sales-type lease assumes that the lease serves as a transfer of property to the customer, or…

Q: Want to the answer

A: Step 1: Definition of Lease:A lease can be explained as a contract between two parties in which one…

Q: Which are the terms may be included in lease agreements, elements that are commonly included in many…

A: A lease is the commitment to purchase an asset by providing rental payments to the lessor.

Q: What is guideline lease?

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

Q: Explain the Summary of the Lease Uncertainties.

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

Q: What does the present value of the residual value of a lease asset is called? Describe about it in…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: compare the disclosures relating to fi nance and operating leases;

A: The IAS 17 defines the disclosures required by operating and financing lease and the accounting…

Q: What are the guidelines for determining when a material amount of land is involved in a lease?

A:

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: Why is the reporting of leases required? Justify your response.

A: A lease is an agreement where an asset is taken on rent and Lessor receives Lease rental in return.…

Q: Write down what is the Composition of Lease Term?

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

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: 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 type(s) of leases result in an asset and a liability on the balance sheet? Select one: A.…

A: Lets understand the basics.Lease are mainly divided into two types which are,(1) operating lease(2)…

Q: Identify the lease classifications for lessors and the criteriathat must be met for each…

A:

Q: In accounting for a finance lease/ Sale-type lease, how are the lessee's and lessor's income…

A: The income statements of the lessor and lessee are affected in finance leases and sale-type leases.…

Q: What is the difference between a "capital/financing lease" and an "operating lease"? Where on the…

A: Financial statements are formal reports generated by a company's account system that  give a…

Q: Identify the parties involved in a novated lease.

A: Individual or the company  can obtain the assets, or any property on lease. Even the party can…

Q: Define each of the following terms:b. Operating lease; financial lease; sale-and-leaseback;…

A: Operating Lease is a form of agreement where the asset is used for a fixed period of time. All the…

Q: establishing the difference between simple interest and compound interest. List and explain the 4…

A: Simple interest is calculated only on the principal amount of a loan or investment. It doesn't…

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: Explain how the lease liability and a right-of-use asset would be recognised and measured at the…

A: Lease is an arrangement in which one party uses the assets and pays lease payment to the other…

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.