The basic difference between a direct-financing lease and a sales-type lease is the allocation of initial direct costs by the lessor to periods benefited by the lease arrangements. recognition of the profit on the sale. amount of the depreciation recorded each year by the lessor. manner in which rental receipts are recorded as rental income.

Q: A lease might specify that rental payments may be increased (or decreased) at some future time…

A: The contingent rentals are excluded from lease payments. Instead they are reported in the disclosure…

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: Which of the following does not affect the computation of the rental income/expense under an…

A: Security deposits does not affect the computation of the rental income/expense under an operating…

Q: The initial direct costs of leasing include lessor advertising costs. are generally borne by the…

A: Introduction:- Initial direct costs included costs incurred by the lessor. It includes the amounts…

Q: If the lease in a sale-leaseback transaction meets one of the five lease tests and is therefore…

A: The leaseback agreement includes the details regarding the lease duration, lease payment, etc.'

Q: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean,…

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: A single lease expense is recognized on the income statement for an operating lease. a finance…

A: Operating lease is the lease other than finance lease. In operating lease, assets are not…

Q: A lease might specify that lease payments may be increased (or decreased) at some future time during…

A:

Q: The lease receivable amount includes the present value of rental payments only. rental payments…

A: Lease Receivables: In this definition, Lease Receivable refers to an account receivable arising out…

Q: A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an…

A: Introduction: Leasing is a mechanism by which the company may receive certain capital assets for…

Q: When a lease modification results in partial termination of a lease, the change shall be accounted…

A: Answer is option D) The increase (decrease) in lease liability as a result of the lease modification…

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: Which of the following is not correct statement for accounting by the lessee? O a. The lessee…

A: The incorrect Statement for accounting by lessee is "The operating lease method is used to account…

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: Lease payments under an operating lease shall be recognized as an expense in the income statement…

A: As per IAS 17 Lease payments under an operating lease shall be recognized as an expense in the…

Q: What is the reason for excluding variable lease payments from the measurement of the lessee’s lease…

A: Under IFRS 16, In lease payments there are two types of payments. One is fixed and other is variable…

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: hen a lease transfers ownership to the lessee by the end of the lease term, the underlying asset is…

A: Solution: As per IAS 17, "If there is no reasonable certainty that the lessee will obtain ownership…

Q: The effect of an operating lease on the income distribution schedule: checked a. is non-existent…

A: When one asset is given for the purpose of use to another person on rent, it is called lease. The…

Q: 9. Which of the following statements is not true. (A) Capitalized leases should be reported on the…

A: A lease is a contract between a property owner and someone who wishes to use their asset. In a lease…

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: The lessor expenses initial direct costs in the year of incurrence in a(n) direct-financing lease.…

A: Lease - It is type of contractual arrangement under which one party agree to rent assets to another…

Q: For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the…

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

Q: What nonlease costs might be included as part of lease payments? How are they accounted for by the…

A:

Q: Describe the accounting procedures involved in applying the operating lease method by a lessee.

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

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: .The initial direct costs of leasing * , O All of these answers are true with regard to the initial…

A: Initial direct cost of leasing:- It is the cost which is generally incurred by the lessor in…

Q: The sales revenue recognized at the commencement of the lease by a manufacturer or dealer lessor…

A: Types of Lease: Financial Lease Operating Lease Leveraged lease Domestic lease, etc.

Q: Which of the following are normal characteristics of a financial lease? I. Maintenance of the leased…

A: In a financial lease an entity (lesser) borrows an asset for a considerably long period of time…

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.