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Falling prices for needed raw materials can translate into higher production costs and lower profits.
Sales-Type Lease
A Sales-Type Lease is a lease agreement where the lessor recognizes immediate profit on the leased asset as if it were sold, typically used in lease financing.
Prepaid Asset
An asset representing goods or services paid for in advance but not yet used or consumed.
Unearned Income
Income received by an individual or a company for which the services have not yet been performed or goods have not yet been delivered. It is considered a liability until the services or goods are provided.
Direct Financing Lease
A lease agreement where the lessor purchases the leased asset specifically for the lease and all financial risks and rewards are transferred to the lessee.
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