In relation to a short-term operating lease, which of the following statements is NOT correct? a. The lessee will be responsible for repairs and maintenance of the leased asset b. The lease period will not cover the leased asset’s useful economic life c. The asset and lease obligation will not be recorded in the statement of financial position d. An operating lease is a rental agreement

Q: A machine is leased and the Present value of the minimum lease payments amounts to the fair value of…

A: A. In the Balance Sheet as a fixed asset only:This option doesn't account for the liability to the…

Q: Which of the following is NOT a correct statement of one of the lease classification test for the…

A: A lease is a contractual agreement between a lessor (owner of an asset) and a lessee (user of the…

Q: Under ASPE, the lessor is required to expense any direct costs associated with a lease up front.…

A: Accounting Standards for Private Enterprises Accounting Standards for Private Enterprises is an…

Q: Under IFRS: lessees and lessors recognize right-of-use assets. lessees always use the operating…

A: The correct answer is “lessors do not distinguish between sales-type and direct financing lease”.

Q: Which of the following should be included by the lessee in determining the amount of the…

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

Q: Risks and benefits of ownership transfer to the lessee with an operating lease. true false

A: Under an operating lease, ownership risks and benefits are not transferred to the lessee.

Q: Which of the following examples represent a risk incidental to ownership of an underlying asset,…

A: The correct answer is d) impairment as a result of damage to the asset.This is why:Operating leases…

Q: A lease agreement may include all of the following types of payments. Which is not included in the…

A: A lease is a contract granting an entity the right to use a specified asset for a specified period…

Q: If a lease does not transfer control of the asset over the lease term, the lessor will generally…

A: Sales-type lease enables the renter to use an asset temporarily while accounting for it as sold…

Q: ect of an operating lease on the income distribution schedule: a. is non-existent. b. affects…

A: Lease - Contracts or documents that transfer property from one party to another for a predetermined…

Q: customer can direct the use of the asset. The asset is explicitly or implicitly identified in the…

A: Identified asset:I An asset whose fair value or market value can be calculated at particular given…

Q: lassified as a finance lease or as an operating lease.

A: In case of a financial lease only, assets or liabilities are created. In case of operating lease…

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: When preparing the journal entries for an operating le which of the following is NOT TRUE? If all of…

A: Lease is an aggreement between a lessor and lessee where the lessor gives his assets to lessee for…

Q: When a lease qualifies as a finance lease, what amount is initially recorded as the cost of the…

A: Solution Concept In case of finance lease , The initial cost of right of use asset include…

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

A: A lease transaction refers to an agreement between two parties, the lessor and the lessee, where the…

Q: Under the FASB old lease standard,

A: Capital lease which is now also known as finance lease resembles financed purchases , the…

Q: Revenue for a direct financing lease is calculated as ________. Group of answer choices None of the…

A: In a direct financing lease, the lessor provides financing to the lessee for the acquisition of an…

Q: Which one of the following is an indicator that a lease is an operating lease for accounting…

A: Option 1: This option is incorrect because if the lease transfers ownership of the asset to the…

Q: A lease transfers the right to use an identified asset for a period of time in exchange for rental…

A: In this question, we are required to determine whether the given statement regarding lease is true…

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.