Instructions: Given the Major Organic Product(s) of Each of the Following

question 7

Essay

Instructions:
Given the major organic product(s) of each of the following reactions. If no reaction is predicted, write "N.R."
-Write the product:

Understand and identify contingent liabilities.

Recognize and describe the characteristics of defined contribution and benefit plans.

Understand the timing of expense recognition related to employee benefits.

Identify and explain the nature of installment notes and the computation of interest.

---

Definitions:

Direct Financing Leases

A type of lease where the lessor accounts for the asset as a receivable at an amount equal to the net investment in the lease.

Sales-Type Leases

Leases where the lessor recognizes immediate profit on the sale, in addition to interest revenue over the lease term, similar to a financial purchase.

Direct Financing Lease

A type of lease arrangement where the lessor purchases the asset for the lessee and finances it, with lease payments designed to cover the cost and provide a return on investment.

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, which the lessee may have to pay or receive depending on the lease agreement.