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

question 25

Multiple Choice

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

• A) DR Leased asset: CR Bank loan
• B) DR Cash: CR Leased asset
• C) DR Lease liability: CR Leased asset
• D) DR Leased asset: CR Lease liability

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Competence

The legal ability, knowledge, and skill required to do something or to appear in court.

Loyalty

A strong feeling of support or allegiance to someone or something, often expecting a mutual sense of duty and faithfulness in return.

Wrongful Dismissal

Termination of an employee's contract of employment in violation of the law or the terms of the contract itself.