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

question 117

True/False

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).

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Definitions:

Demand Schedule

A chart or table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Elastic Segment

refers to a portion of the market where demand is highly sensitive to changes in price.

Inelastic Segment

A portion of the demand curve where consumers' demand for a product does not significantly change with a change in price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.