It is noteworthy that the same category of an operating expense can be either a fixed cost or a variable cost, depending on the situation. For example, the wage for a full-time office employee is a fixed cost to
The lease should be treated as an operating lease because:It does not transfer the ownership to lessee at the end of the lease term; The lease term is only half the total useful life of the asset; The present value of lease payments is three-fourth of the fair value of the asset (...
GAAP rules state that to determine whether the lease is an operating lease, the lease must not have any of these characteristics: 1. The life of the lease must not be longer than 75% of the life of the asset. 2. The lessor cannot transfer ownership of the asset to the lessee at the...
There are two types of lease, Operating Lease and Finance lease. The accounting treatment and recording of lease payment in the Income statement depend upon the type of lease. Operating Lease:A lease is classified as an operating lease if it does not transfer substantially all the risks and re...
A. Operating lease B. Debenture bonds C. Current portion of long-term debt D. Convertible bonds 相关知识点: 试题来源: 解析 A 正确答案:A 解析:答案为A项。current portion of long-term debt,CPLTD“长期债务中一年内到期的部分”。本题中除A项所指的“经营性租赁”属于表外融资,其余选项的三种融资...
Analyst should consider several off- balance sheet items such as operating lease, certain pension obligations to get the full picture of long-term obligation. Finally, this ratio should be looked at in conjunction with several other leverage ratios to get a holistic view on the financial riskiness...
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GAAP groups all leases into one of two main categories: operating or capital leases. Operating leases are accounted for simply expensing the lease payments just like a company would do with rent expense.Each month the lessee will record a rent payment as an expense. Capital leases, on the ...
Under IFRS 16, a lease is defined as a contract granting an entity the right to utilize a specific asset for a prescribed period of time in exchange for agreed-upon consideration. To determine whether a contract grants control of the asset to the lessee, the agreement must provide the follow...