Which of the Following Is an Appropriate Journal Entry for the Recognition

question 20

Multiple Choice

Which of the following is an appropriate journal entry for the recognition by a lessor of the first payment received under an operating lease arrangement?

• A) DR Lease expense: CR Cash
• B) DR Leased liability: CR Lease income
• C) DR Cash: CR Lease income
• D) DR Lease expense: CR Deferred initial direct costs

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Definitions:

Anglicise

To make or become English in form or character, often referring to language adaptation or cultural assimilation.

Preconceived Ideas

Beliefs, opinions, or notions formed in advance of having the evidence for their truth or usefulness, often leading to biases or misunderstandings.

Islam

A monotheistic religion founded in the 7th century based on the teachings of Prophet Muhammad as presented in the Qur'an.

Discriminatory

Showing bias or prejudice resulting in unfair treatment of individuals or groups based on characteristics such as race, age, or gender.