An Essential Characteristic of Operating Leases Is That

question 10

Multiple Choice

An essential characteristic of operating leases is that:

• A)the lessor is able to use the asset without directly incurring the risks of ownership.
• B)the lessor is responsible for insuring the asset and maintaining it.
• C)they are usually short term.
• D)the lessee is able to use the asset without directly incurring the risks of ownership.

Comprehend the accounting methods for mergers and their impact on financial statements.

Discuss the motivations behind mergers and acquisitions from a managerial perspective.

Examine the legal and regulatory environment of mergers and acquisitions.

Evaluate the post-merger integration challenges and success factors.

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Definitions:

Product Cost

The total cost associated with making or acquiring a product, including materials, labor, and overhead.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.

Activity Increases

Situations in which the level or intensity of a specific action or operations grows or intensifies.

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.