On the Balance Sheet, the Lease Liability Is Measured as ________

question 54

Multiple Choice

On the balance sheet, the lease liability is measured as ________.

• A) the present value of the lease payments plus the present value of the guaranteed residual value if the lessee guarantees it(if any)
• B) the present value of the lease payments less the present value of the guaranteed residual value (if any)
• C) the future value of the lease payments plus the future value of the guaranteed residual value (if any)
• D) the present value of the lease payments plus the future value of the guaranteed residual value (if any)

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Definitions:

Federal Income Taxes

Taxes levied by the national government on annual income earned by individuals, corporations, trusts, and other legal entities.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Financial Affairs

The management and analysis of money, investments, and other financial instruments by individuals or entities.

Pledged Assets

Assets that are promised as security for the repayment of a loan.