Which of the Following Is a Required Disclosure by a Lessor

question 50

Multiple Choice

Which of the following is a required disclosure by a lessor of an operating lease?

• A) the cost and carrying amount, if different, of property on lease by major category
• B) minimum future rentals on non-cancelable leases in total as of the balance sheet date and for the five succeeding fiscal years
• C) total contingent rentals included in income
• D) all of these

---

Definitions:

Manufacturing Overhead

All manufacturing costs that cannot be directly traced to individual units produced, such as electricity, maintenance, and factory management salaries.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities required to produce them, aimed at providing more accurate costs.

Overhead Cost

The ongoing expenses of operating a business that are not directly attributable to a specific product or service, including rent, utilities, and administrative expenses.

Product Costs

The total costs incurred to produce a product, including direct materials, direct labor, and manufacturing overhead.