Operating Leases Differ from Capital Leases in That

question 175

Multiple Choice

Operating leases differ from capital leases in that

• A)For a capital lease,the lessee records the lease payments as rent expense,but for an operating lease,the lessee reports the lease payments as depreciation expense.
• B)For an operating lease,the lessee depreciates the asset acquired under lease,but for the capital lease,the lessee does not.
• C)Operating leases create a long-term liability on the balance sheet,but capital leases do not.
• D)Operating leases do not transfer ownership of the asset under the lease,but capital leases often do.
• E)Operating lease payments are generally greater than capital lease payments.

Identify strategies used by brands to shift consumer perception and behavior.

Analyze the role of conformity and nonconformity in consumer behavior and group dynamics.

Explain the impact of group size, unanimity, and expertise on individual behavior.

Understand the role of cultural pressures in shaping consumer behavior.

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Definitions:

Credit

A payment subtracted from existing balance.

Day Sheet

A document used in accounting and bookkeeping that records all transactions for a particular day.

Accounts Receivable

Funds that are due to a business from its clients for products or services already provided but not yet compensated for.

Double-Entry Bookkeeping System

Double-Entry Bookkeeping System is an accounting method where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the books are always balanced.