Which of the Following Is an Appropriate Journal Entry for the Initial

question 4

Multiple Choice

Which of the following is an appropriate journal entry for the initial recognition by a lessor of a finance lease arrangement?

• A) DR Lease receivable CR Asset;
• B) DR Lease receivable CR Lease liability;
• C) DR Leased asset: CR Cash/Trade payables;
• D) DR Leased asset CR Cash.

---

Definitions:

Resource Pricing

The determination of the price for natural resources based on factors like scarcity, demand, and extraction costs.

Determinant

A factor or variable that decisively affects the nature or outcome of something.

Money Incomes

Earnings received in the form of currency or its equivalent, typically through employment, investments, or transfers like pensions and benefits.

Wage Rates

The amount of money paid to an employee per unit of time, such as an hour or month, for labor or services.