The Operating Lease Tends to Be a Long-Term Lease,and the Purchase

question 33

True/False

The operating lease tends to be a long-term lease,and the purchase lease tends to be a short-term lease.

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Definitions:

Cash-Basis Expenses

Expenses recorded when cash is actually paid out, under the cash basis of accounting, as opposed to the accrual basis which recognizes expenses when they are incurred.

Warranty Expenses

Costs recognized by companies to cover repairs or replacements for customers as part of product warranty agreements.

Inventory Purchases

The buying of goods to be sold in the normal course of business operations.

Sustainable Income

Revenue that can be maintained for the foreseeable future without diminishing resources or opportunities.