Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset. To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Question

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Answer 1

Question

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

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I am searching for the correct answer to this general accounting problem with proper accounting rules.

Answer 2

Question

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

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Answer 3

Question

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

Want to see more full solutions like this?

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Answer 4

Question

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

Answer 6

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.

Conclusion

Thus, the major leasing companies and the advantages are discussed above.

Answer 7

Chapter 21, Problem 1Q

To determine

Lease: A contractual arrangement between the owner of the asset and the user of the asset for a fixed amount of money is termed lease. In this contract the owner of the asset permits the user to use the property for a fixed sum of money received at the time of handing over the asset. At the end of the contract tenure the user of the asset need to return the asset to the owner. The parties involved in the contract are termed the lessor the owner of the asset and the lessee the user of the asset.

To determine the leasing companies in the country and the advantage of having captive as a leasing company.

Answer 8

Expert Solution & Answer

Explanation of Solution

Major leasing companies: The major leasing companies in the country are banks, captives and some independent owners. The bank acts as both the lessor and the lessee depending on the requirement and sometimes it acts as an agent for its customers.

Advantage of having captives into leasing:

Captives have better knowledge on the products than the other lessors; this helps in quick processing of the contract.
Captives have more focus on the company products than the general lease product in order to avoid future complications like quality, repair and so on.
Captives can create their contract and meet up the financial requirements via leasing subsidiaries.