A Popular Method for an Entity to Acquire the Benefits

question 15

Multiple Choice

A popular method for an entity to acquire the benefits of property, plant and equipment is to lease assets. How many of these asset types are commonly subject to lease agreements?
Motor vehicles
Land and buildings
Machinery
Storage space

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its owners as dividends.

Income Statement

A financial report that outlines the revenues, expenses, and profits over a specific period, indicating the operational efficiency of a company.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily match its market value.

Dividend Record

The date on which a company records the shareholders eligible to receive the declared dividend.