If a Business Is to Be Successful in the Long

question 43

Multiple Choice

If a business is to be successful in the long run,it must produce quality products,operate efficiently,and be

• A) fun.
• B) socially responsible.
• C) hard working.
• D) egalitarian.
• E) transparent.

---

Definitions:

Direct Financing Leases

Leases where the lessor purchases an asset and leases it out, and the lease payments cover the purchase cost, plus a return on investment to the lessor.

Net Investment

The total amount spent on purchasing new assets and maintaining existing ones, minus any depreciation.

Initial Direct Costs

Expenses directly associated with acquiring or initiating a lease, which can include commissions, legal fees, and other incremental costs.

Unearned Interest Revenue-Leases

Revenue recognized from leasing transactions which has been collected but not yet earned, typically because the service period has not been completed.