On January 1, 2016, Stacie Signed a Lease Agreement with Amy

question 93

Multiple Choice

On January 1, 2016, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $25,000 beginning December 31, 2016. The lease is considered to be a capital lease. When reading the Amy income statement, you would expect to find which of the following accounts?

• A) Rent Revenue
• B) Interest Revenue
• C) Rental Expense
• D) Interest Expense

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Definitions:

Theater

A place where live performances of plays, music, dance, or other art forms are presented to an audience.

Crowded

A situation or place where there is a high density of people or objects in a given area.

Predicate

The component of a sentence or an equation that expresses what is said about the subject, often involving a verb or relationship indicating properties or actions.

Proposition

An assertion that conveys a judgment or viewpoint.