What entry is required for the lessor for an operating lease?
A: Gain/loss on asset sale.
B: Net investment in lease.
C: Interest income.
D: Depreciation expense.
A: Gain/loss on asset sale.
B: Net investment in lease.
C: Interest income.
D: Depreciation expense.
举一反三
- What entry is required for the lessor in a finance lease? A: Lease receivable. B: Rental income. C: Interest expense. D: Depreciation expense.
- One difference between a financial lease and operating lease is that：（ ） A: there is an often a call option in a financial lease. B: there is often an option to buy in an operating lease. C: an operating lease is often cancellable by the lessee. D: a financial lease is often cancellable by the lessee.
- In order to convert the average annual net cash inflow from the asset back to the average annual operating income from the asset, one must ( ) A: subtract annual depreciation expense B: add annual depreciation expense C: multiply by annual depreciation expense D: divide by annual depreciation expense
- The characteristics of operating lease A: Revocability B: Fully payment-ability C: Incomplete payment-ability D: Lease property is purchased in bulk by lessor
- The lessor should divide the lease into financing lease and （ ） lease on the lease start date.