What Entry Is Required for the Lessor in a Operating

question 58

Multiple Choice

What entry is required for the lessor in a operating lease?

• A)Gain/loss on asset sale.
• B)Loan receivable.
• C)Interest income.
• D)Depreciation expense.

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Definitions:

Service Revenue

Income earned by a company for the services it provides to its customers.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Closing Entries

These are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Permanent Accounts

These are balance sheet accounts whose balances are carried over to the next accounting period, such as assets, liabilities, and equity accounts.