Lease Standardization Helps Justify Leasing Because

question 72

Multiple Choice

Lease standardization helps justify leasing because:

• A)It makes all lessors pay the same lease payments
• B)It lowers costs through standardized leased asset and security evaluations
• C)It makes it possible for lessors to investigate lessees more thoroughly
• D)It helps lessees to select similar assets

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Definitions:

Cash Dividends Payable

A liability account that records the amount of cash dividends that a company has declared but has not yet paid to shareholders.

Declared

Refers to a dividend or other corporate action that has been formally announced by a company's board of directors.

Payment of Dividends

This refers to the distribution of a portion of a company's earnings to its shareholders.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, recognizing the asset's wear and tear, deterioration, or obsolescence.