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Match Each Term with the Appropriate Definition

question 25

Multiple Choice

Match each term with the appropriate definition.
-​diabesity


Definitions:

Operating Lease

A lease in which the lessee does not effectively acquire ownership of the leased asset. Accounted for as a stream of expense payments on the income statement. No entry is made on the balance sheet to reflect the acquisition of the asset. The most common form of off balance sheet financing. Compare with Financing lease.

Economic Life

The expected period during which an asset remains useful to the average owner.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Required Return

The minimum profit or yield that investors expect or require from an investment.

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