Under the Capital Method of Accounting for Leases the Excess

question 8

Multiple Choice

Under the capital method of accounting for leases the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor

• A)In increasing amounts during the term of the lease
• B)In constant amounts during the term of the lease
• C)In decreasing amounts during the term of the lease
• D)After the cost of leased property has been fully recovered through rentals

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Definitions:

Independent Variable

An independent variable is a variable that is manipulated in an experiment to see if it causes a change in another variable.

Multiple Regression Model

A statistical method that explains the relationship between one dependent variable and two or more independent variables.

Dependent Variable

A variable in an experiment or study that is expected to change in response to changes in another variable (the independent variable).

Holding Constant

Holding constant is a method used in analysis where certain variables are kept unchanged in order to isolate the effects of other variables.