On January 1, 2010, Scarlett Signed a Lease Agreement with Amber.Amber

question 97

Multiple Choice

On January 1, 2010, Scarlett signed a lease agreement with Amber.Amber will use the equipment and make ten annual payments of $15, 000 beginning December 31, 2010.The lease is considered to be a sales-type lease.When reading the Scarlett income statement, you would expect to find which of the following accounts?

• A)Rent Revenue
• B)Interest Revenue
• C)Rental Expense
• D)Interest Expense

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Definitions:

Fixed Place of Business

A specific location where a company conducts its operations and business activities on a regular basis.

Legislation

Laws that have been enacted by a legislative body, such as a parliament or congress.

Physical Threats

Explicit or implicit actions suggesting the intent to cause bodily harm to another person.

Collection Agency

A business that pursues payments of debts owed by individuals or businesses on behalf of creditors.