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:

Disaffirmance

The act of denying, refusing, or contradicting an assertion or contract, especially in legal contexts.

Necessaries

Items considered essential for maintaining a person’s standard of living, such as food, clothing, and shelter, which one is legally obligated to provide for dependants.

Emancipated

Refers to a minor who has been legally granted adult status and freedoms, typically through a court process.

Intoxication

A physical and mental state of being impaired due to the consumption of alcohol, drugs, or other substances.