Theoretic justification for considering all leases

Assignment Help Accounting Basics

Reference no: EM13157812

Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that:

A. during the life of the lease the lessee can effectively treat the property as if it were owned by the lessee.

B. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal.

C. a lease reflects the purchase or sale of a quantifiable right to the use of property.

D. at the end of the lease the property usually can be purchased by the lessee.

Reference no: EM13157812

Questions Cloud

Use of straight-line method of amortization : The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value?

How the united states and the other country differ : how the United States and the other country differ. Which of the two countries has better prospects for the future and why? Provide a reasoned opinion.

Psychological contract : What concerns does a company need to consider in following background check guidelines? Discuss the steps needed to ensure compliance with the Fair Credit Reporting Act.

Kinds of emotions and feelings : What kinds of emotions and feelings did you experience during radical change in your life? Was there stress associated with the change?

Theoretic justification for considering all leases : Although only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that:

State industrial preparation of organic phosphorus compounds : Phosphorus pentachloride is used in the industrial preparation of organic phosphorus compounds. Equation 1 shows its preparation from PCl3 and Cl2. (1) PCl3(l) + Cl2(g) PCl5(s)

Show the short and long run effects of a monetary expansion : Show the short and long run effects of a monetary expansion in this situation in the AD/AS model. You can omit the labor market and production function graphs and you may assume sticky prices for SRAS.

Theory underlying rational emotive therapy : Discuss the theory underlying Rational Emotive Therapy. Why does this approach lend itself so well as a therapy? Develop a short, fictional case study of a client with an abnormal behavior.

Discuss how the distribution of income among various groups : Discuss how the distribution of income among various groups of income earners have changed in this country during the past 50 years. In your opinion, do we need to initiate any policy to address the distribution of income?

User Account

All Pages