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

question 17

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/Accounts payable
• D) DR Leased asset: CR Cash

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, crucial for decision-making in production and pricing strategies.

Fixed Cost

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and loan payments.

Variable

A variable represents any quantity, factor, or feature that can vary or change in mathematical modeling, statistics, and scientific experiments, influencing results or outcomes.

Output

Refers to the total amount of goods or services produced by an individual, company, or economy.