What is a lease? Explain the difference between an operating lease and a capital lease.
What is a lease? Explain the difference between an operating lease and a capital lease.
Explain the difference between operating and financing liabilities. In addition, discuss the implications of lease accounting for the analysis of financial statements.
The methods of accounting for a lease by the lessee are: A. Operating and capital lease methods. B.Operating sales, and capital lease methods. C. Operating and finance lease methods. D. None of these answers are correct.
Q1) According to our textbook [1], what is the difference between capital expenditures and operating expenses? Why is this important to the IT manager?
How does a capital lease differ from an operating lease for the purposes of reporting liabilities? Select one: a. An operating lease must be long-term, but unlike a capital lease, it can be cancelled. b. A capital lease is long-term and non-cancellable; all other leases are operating leases. c. A capital lease typically is used for the purchase of an asset, while the entity cannot acquire assets through an operating lease. d. Assets purchased by a capital lease are shown...
Determine whether the following description is true of a capital lease, an operating lease, neither or both. "A method of financing an asset like equipment without purchasing it outright with equity" Capital lease Operating lease Both Neither
1- Under previous accounting rules, what are the financial reporting differences between an operating lease and a capital lease? How did this change with the new accounting rules effective in 2019? 2- What are the economic and accounting differences between a defined contribution plan and a defined benefit plan? 3- What are the two components of income tax expense?
Why would a company want to record a capital lease as an operating lease? Can you see any benefit as far as the financial statements?
What are the results from the proposed changes to lease accounting on operating and capital leases. Identify how the right to use model will impact financial reporting, indicate how companies are likely to manage the change in reporting. What recommendations could be made to CFOs of retailers , service providers, and other businesses that lease several locations or have substantial leases of real estate or other assets. What are the pros and cons of each approach.
Explain the difference between the direct and indirect methods of preparing the operating section of the statement of cash flows. 2. Which method is preferred by GAAP?
1. Explain the difference between the direct and indirect methods of preparing the operating section of the statement of cash flows. 2. Which method is preferred by GAAP?