For Which Types of Leases Is the Risk of Loss

question 70

Multiple Choice

For which types of leases is the risk of loss on the lessor during the term of the lease?

• A)Ordinary leases.
• B)Finance leases.
• C)Both ordinary and finance leases.
• D)Neither ordinary nor finance leases.

---

Definitions:

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, thereby holding a portion of the company's ownership.

Paid-in Capital

The amount of money that shareholders have invested in a company through the purchase of stock, excluding the par value of the shares.

Treasury Stock

Shares that were previously issued and outstanding but have been repurchased by the issuing company and held in its own treasury.

Debit Balance

The remaining amount in a financial account that appears on the left side of the account ledger, indicating assets or expenses.