Which of the following entries,shown in a company's accounting records,indicates that the company has entered into a finance lease?
A) Dr Interest expense
Dr Lease Liability
Cr Cash at Bank
B) Dr Cash at Bank
Cr Lease Liability
C) Dr Rent Expense
Dr Interest Expense
Cr Cash at Bank
D) Dr Cash at Bank
Cr Lease Revenue
Cr Interest Revenue
Correct Answer:
Verified
Q7: Examine the following statements:
(a)Under an operating lease,substantially
Q8: Jaiko has leased equipment for 5
Q9: Which of the following is not a
Q10: Bellamy Pty Ltd enters into a
Q11: Fortuna Ltd has leased some machinery
Q13: A 'sale-and-leaseback' transaction:
A) can be classified as
Q14: Jaiko has leased equipment for 5 years
Q15: AGB Ltd has leased some equipment
Q17: A typical lease agreement will always set
Q17: The rental method of accounting for leases
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents