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In an Operating Lease, If a Non-Refundable Down Payment Is

question 117

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In an operating lease, if a non-refundable down payment is made in advance, the lessor should initially debit Cash and credit Unearned Rent (liability).


Definitions:

Fixed-Rate Mortgages

A type of mortgage in which the interest rate remains constant throughout the term of the loan.

Government Backing

Support or endorsement provided by governmental entities, often in the form of guarantees, subsidies, or policies.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

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