If, as Part of the Accounting for a Lease, the Company

question 203

Multiple Choice

If, as part of the accounting for a lease, the company debits an asset and credits a liability, then the lease must be a(n) :

• A) purchased lease.
• B) operating lease.
• C) cancelable lease.
• D) capital lease.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are considered a variable cost.

Direct Labor

The cost of wages paid to workers directly involved in the production of goods or provision of services.

Direct Materials

The raw materials directly traceable to the manufacturing of a product and included in the cost of goods sold.