Timely Limited Accepts a Lease Incentive to Enter into a 4-Year

question 20

Multiple Choice

Timely Limited accepts a lease incentive to enter into a 4-year operating lease for equipment.The incentive is cash amounting to $10 000 that will be paid on the date the lease agreement is signed.On inception of the lease,the lessor will record:

• A)DR Cash $10 000 CR Incentive to lessee $10 000
• B)DR Incentive to lessee $10 000 CR Cash $10 000
• C)DR Rent income $10 000 CR Rent expense $10 000
• D)DR Cash $10 000 CR Rent income $10 000

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Definitions:

Credit Information

Data regarding an individual's or organization's financial history and creditworthiness, used for assessing the ability to repay loans.

Inductive Sequence

A logical arrangement of ideas that moves from specific observations to broader generalizations.

Writer's Opinions

The personal views or beliefs of the author expressed in their writing.

Operating Procedures

Standardized instructions or methods that outline how specific tasks or operations should be performed.