A Lease That Should Be Accounted for by the Lessee

question 29

Multiple Choice

A lease that should be accounted for by the lessee as ordinary rent expense is

• A)a financing lease.
• B)a capital lease.
• C)an operating lease.
• D)an accounting lease.
• E)a sale-leaseback.

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Definitions:

Displaced

Removed or moved out of a usual or proper place, often referring to people who are forced to leave their homes.

Fixated

Exhibiting an obsessive focus on an idea, task, or object, often at the expense of the ability to engage with a broader range of topics or activities.

Superego

The part of personality that, according to Freud, represents internalized ideals and provides standards for judgment (the conscience) and for future aspirations.

Ego

The largely conscious, “executive” part of personality that, according to Freud, mediates among the demands of the id, superego, and reality. The ego operates on the reality principle, satisfying the id’s desires in ways that will realistically bring pleasure rather than pain.