When a Non-Refundable Down Payment on a Leased Asset Is

question 207

Multiple Choice

When a non-refundable down payment on a leased asset is made in advance under an operating lease, at the payment date, the lessor credits:

• A)rent revenue.
• B)unearned rent.
• C)cash.
• D)lease liability.

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Definitions:

Employee Stock Ownership Plan

A program that grants employees ownership interest in the company, typically through the allocation of stock.

Votes By Shareholders

The action of shareholders exercising their rights to vote on corporate matters, such as electing directors or approving mergers.

Stock Options

Financial incentives offered to employees, providing them the right to purchase company stock at a set price for a specific time period.

Piecework Rates

A compensation system where employees are paid a fixed rate for each unit produced or action performed, rather than receiving an hourly wage.