Case-Based Critical Thinking Questions

question 147

Multiple Choice

Case-Based Critical Thinking Questions
Case 3-1

Column Chart Area Chart
Sarah has put together the same information in two different charts, shown in the figure above, to present to her boss. She is thinking through the pros and cons of each chart type.
-Which chart does a better job of illustrating the collective sales trend in the Equipment, Footwear, and Apparel categories over the eight years?

• A) the column chart
• B) the area chart
• C) both a and b equally
• D) neither a nor b does a good job

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Definitions:

Undiscounted Lease Payments

Lease payments made over the lease term without reducing them for interest or present value factors.

Lessees Disclosure

Information that lessees are required to make known, typically relating to the rights and obligations arising from leasing arrangements per accounting standards.

Initial Direct Costs

Expenses directly associated with obtaining a financing agreement or leasing contract.

Lease Expense

The cost incurred from leasing an asset, recognized in the income statement over the lease term as an operating expense for operating leases or as depreciation and interest for finance leases.