When the Government Acts as a Lessor, Which of the Following

question 55

Multiple Choice

When the government acts as a lessor, which of the following is true? Which of the following is true? i. The lessor is selling the rights to the entire economic life of the asset.
ii. The lessor is selling a portion of the life economic life of the asset.
iii. The lessor should offset the receivable with the depreciation of the asset.
iv. The lessor should offset the receivable with deferred inflow of resources

• A) I and II
• B) III and IV
• C) I and III
• D) II and IV

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Definitions:

Reverse Stock Split

A reverse stock split is an action taken by a corporation to reduce the number of its current shares in the market, thereby increasing the share price.

Market Price

The current price at which an asset or service can be bought or sold in a competitive and open market.

Shares Outstanding

Represents the total number of a company's shares that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.