Suppose you are a manager at the accounting firm Fitz and Widdle and you just met with
Question:
Suppose you are a manager at the accounting firm Fitz and Widdle and you just met with a new client who is considering leasing products to her customers. The client was surprised when you told her that accounting for leases can vary depending on how the lease is structured. She's asked you for input on how to structure her customers' leases for the most positive impact on her company's earnings.
Based on your analysis of the information provided, provide your recommendations on the following:
• Be specific, and consider the impact on your client's financial statements, as well as how to make the lease option attractive to her customers.
• Provide a comparison and contrast of the pros and cons of various lease terms.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt