The FASB Standard on Accounting for Leases Issued in 2016

question 29

True/False

The FASB standard on accounting for leases issued in 2016 requires most leases to be reported on the lessee's balance sheet,which is a significant change from the previous accounting requirements.

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Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in the market.

Economic Profit

The total revenue of a business minus its explicit and implicit costs; represents additional wealth created by a company over and above its costs.

Total Revenue

The overall amount of money generated from the sale of goods or services.

Total Cost

The total expenditure incurred by a firm to produce a specific amount of goods or services, including both fixed and variable costs.