Listed below are 15 terms followed by a list of phrases that describe or characterize each of the terms. Match ea phrase with the correct term. TERM 1. Interest expense 2. Disclosure only 3. Lessor's gross investment 4. Lessee's lease payments 5. Lessor's net investment 6. Initial direct costs 7. Operating lease 8. Bargain purchase option 9. Depreciable assets 10. Loss to lessee PHRASE Periodic rent payments plus excess guaranteed residual value. Deducted in lessor's computation of lease payments. Leasehold improvements. Cash paid to satisfy residual value guarantee. Sales-type lease selling expense. Depreciation longer than lease term. Sale-leaseback as operating lease. PV of lease payments plus PV of residual value. Future lease payments in each of the next five years. Periodic rent payments plus residual value. Lease payments plus guaranteed residual value. 11. Finance lease expense 12. PV of bargain purchase option price 13. Title transfers to lessee Nonlease payments. 14. Loan Rent revenue. 15. Lessor's lease payments Purchase price less than fair value. Outstanding balance times effective rate. NUMBER

Listed below are 15 terms followed by a list of phrases that describe or characterize each of the terms. Match ea phrase with the correct term. TERM 1. Interest expense 2. Disclosure only 3. Lessor's gross investment 4. Lessee's lease payments 5. Lessor's net investment 6. Initial direct costs 7. Operating lease 8. Bargain purchase option 9. Depreciable assets 10. Loss to lessee PHRASE Periodic rent payments plus excess guaranteed residual value. Deducted in lessor's computation of lease payments. Leasehold improvements. Cash paid to satisfy residual value guarantee. Sales-type lease selling expense. Depreciation longer than lease term. Sale-leaseback as operating lease. PV of lease payments plus PV of residual value. Future lease payments in each of the next five years. Periodic rent payments plus residual value. Lease payments plus guaranteed residual value. 11. Finance lease expense 12. PV of bargain purchase option price 13. Title transfers to lessee Nonlease payments. 14. Loan Rent revenue. 15. Lessor's lease payments Purchase price less than fair value. Outstanding balance times effective rate. NUMBER

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

100%

Listed below are 15 terms followed by a list of phrases that describe or characterize each of the terms. Match each
phrase with the correct term.
TERM
1. Interest expense
2. Disclosure only
3. Lessor's gross investment
4. Lessee's lease payments
5. Lessor's net investment
6. Initial direct costs
7. Operating lease
8. Bargain purchase option
9. Depreciable assets
10. Loss to lessee
PHRASE
Periodic rent payments plus excess
guaranteed residual value.
Deducted in lessor's computation of
lease payments.
Leasehold improvements.
Cash paid to satisfy residual value
guarantee.
Sales-type lease selling expense.
Depreciation longer than lease term.
Sale-leaseback as operating lease.
PV of lease payments plus PV of residual
value.
Future lease payments in each of the
next five years.
Periodic rent payments plus residual
value.
Lease payments plus guaranteed residual
value.
11. Finance lease expense
12. PV of bargain purchase
option price
13. Title transfers to lessee Nonlease payments.
14. Loan
Rent revenue.
15. Lessor's lease payments Purchase price less than fair value.
Outstanding balance times effective rate.
NUMBER

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On the balance sheet, the lease liability is measured as ________. Group of answer choices the present value of the lease payments less the present value of the guaranteed residual value (if any) the present value of the lease payments plus the future value of the guaranteed residual value (if any) the present value of the lease payments plus the present value of the guaranteed residual value if the lessee guarantees it(if any) the future value of the lease payments plus the future value of the guaranteed residual value (if any)
In calculating the amortization of a leased asset, the lessee should subtract a Select one: a. guaranteed residual value and amortize over the term of the lease. b. unguaranteed residual value and amortize over the term of the lease. c. guaranteed residual value and amortize over the life of the asset. d. unguaranteed residual value and amortize over the life of the asset. e. None of the above.
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The lessor expenses initial direct costs in the year of incurrence in a(n) direct-financing lease. sales-type lease. direct-financing lease and a sales-type lease. operating lease.
Revenue for a direct financing lease is calculated as ________. Group of answer choices None of the above. the higher of (1) the fair value of the leased asset or (2) the sum of the lease receivable and any lease payments paid before the lease commencement date the lower of (1) the fair value of the leased asset or (2) the sum of the lease receivable and any lease payments paid before the lease commencement date the lower of (1) the residual value of the asset or (2) the sum of the lease receivable and any lease payments paid before the lease commencement date
For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the lease is classifi ed as:A . a sales-type lease.B . an operating lease.C . a fi nancing lease.
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An Operating Lease will have which of these expenses (may have more than one answer)? Check All That Apply None of these Rental ExpenseRental Expense Depreciation ExpenseDepreciation Expense Interest Expense This question may have more than one answer,
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Which of the following accounts is not included in the journal entry recorded by a lessee when paying the lease payment of an operating lease? A. Lease Expense B. Right-of-Use Asset C. Interest Expense D. Lease Liability