Since the lease payments under a lease agreement are normally paid at the beginning of each period,the appropriate compound interest table to be used to determine the amount at which the leased asset should be recorded is the:

Question

Quizplus · Accepted Answer

The appropriate compound interest table to be used for recording the leased asset is present value of an annuity due table since the lease payments are made at the beginning of each period. This table calculates the present value of a series of equal payments made at the beginning of each period.

Since the Lease Payments Under a Lease Agreement Are Normally