What is the basic difference between the accounting procedures used by a lessor for a sales-type lease

Question:

What is the basic difference between the accounting procedures used by a lessor for a sales-type lease and those used for a direct financing lease?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

See More Books

Question Posted: Mar 10, 2012 06:48 AM

See More Questions

What is the basic difference between cash flow after taxes (CFAT) and net operating profit after taxes (NOPAT)?
What is the basic difference between fission and fusion?
What is the basic difference between a weighted moving average and exponential smoothing?
Perez Manufacturing Company began operations on January 1. During the year, it started and completed 1,740 units of product. The financial statements are prepared in accordance with GAAP. The company...
During December, Western Solvent completed 48,400 units. At the end of December, there were 10,100 units in ending Work in Process that were 20 percent complete with respect to labor and overhead and...
a. What is the basic accounting equation? b. What is its implication for the numbers on a balance sheet? c. What does the basic accounting equation tell us about a businesss equity?
Suppose $F(S, t)$ is the forward price of a commodity with no storage cost and governed by $\mathrm{d} S(t)=\mu \mathrm{d} t+\sigma \mathrm{d} z$ and terminating at time $T$. What is the...
After graduating from college, you and your friends start selling birdhouses made from recycled plastic. The idea has caught on, as shown by the following sales gures: MONTH DEMAND March..............
The following data pertain to ABC Company (assume a perpetual inventory system) for the month ended January 31, 2019: Date Description Units Unit Cost Unit Selling Price Jan.1 Beg. Inventory 5...
What is the value of CP's revised offer on December 8 (before CP "sweetened" its offer by adding the CVR security)? In your analysis, assume the following: a) A valuation date of December 31, 2015,...
From the standpoint of the lessor, a sales-type lease must meet one or more of the criteria of a capital lease as well as two additional criteria. Name these two additional criteria.
Why are compound interest concepts appropriate and applicable in accounting for a direct financing lease?
Presley Corp. issued $200,000 of 6% bonds on November 1, 2014, at par value. The bonds were dated October 1, 2014 and pay interest each April 1 and October 1. Record the issue of the bonds on...
1. Materials purchased on account were $256,500, and wages for factory workers were $110,840. 2. Materials requisitioned and factory labour used by each job were as follows: Job Number A1 A2 A3 A4...
A triangular shaped flume with side slope H:V-2:1 is placed in a channel where critical flow condition is generated. Please provide a rating curve showing the relationship (Q~ye) for discharge...
(c). The annual report of Green limited and White limited as at December 31 2020 contained the following financial information. Green limited acquired 80% of the Ordinary shares of White limited for...
Assume that: Crew 1 measured A to B Crew 2 measured B to C Crew 3 measured C to D A B Distances A to B (measured 4 times): 99.96, 100.01, 100.00, 100.02 Distances B to C (measured 5 times): 99.98,...
We have five boxes: two boxes contain two white marbles and one black marble each, one box contains ten black marbles, two boxes contain three white marbles and one black marble each. We draw a box...
The following excerpt is from TORM A/S (NASDAQ: TORM) from the Risk Factors section of Item 3, Key Information, in its fiscal year 2008 20-F filing. The excerpt illustrates debt covenants and their...
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
How to improve service quality.
Why is the liabilities section of the balance sheet of primary significance to bankers?
Why is the liabilities section of the balance sheet of primary significance to bankers?
Why is the liabilities section of the balance sheet of primary significance to bankers?
With regard to the production possibilities frontier (PPF), an efficient point is a point that is: ?
Within the context of rapidly evolving regulatory landscapes and heightened ethical scrutiny, how do advanced organizations navigate the ethical complexities of technological innovation and...
Write a program that accepts an integer limit and an integer value and that prints a complete line of output reporting the multiples of value uptil the limit . Keep prompting the user for a value...

What is the basic difference between the accounting procedures used by a lessor for a sales-type lease

Question:

Step by Step Answer:

The basic difference in accounting for a salestype lease i...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions