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

question 25

Multiple Choice

Which of the following is an appropriate journal entry for the initial recognition by a manufacturer/dealer lessor?

• A) DR Leased asset: CR Cash
• B) DR Cash: CR Sales revenue
• C) DR Lease liability: CR Leased asset
• D) DR Leased receivable: CR Sales revenue

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Definitions:

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act, with mutual obligations binding both parties.

Promised Offer

An offer made by one party to another indicating a willingness to enter into a contract under specified terms.

UCC

The Uniform Commercial Code is an extensive collection of statutes that regulate all business dealings within the United States.

Means Acceptance

The acceptance of an offer in contract law through the performance of the conditions stated in the offer, thus creating a binding contract.