Chp 17 Accounting for Leases Flashcards

1
Q

Owner who has rented out the use of their property, plant, or equipment for a period of time.

A

Lessor

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2
Q

Asset account name recorded by lessee for present value of lease payment.

A

Right Of Use (Asset)

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3
Q

Periodic lease payments that vary because of changes in factors or circumstances after lease commencement date.

A

Variable

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4
Q

Additions to leased property that revert back to lessor at end of lease

A

Lease Hold Improvements

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5
Q

Payment for terminating a lease early by lessee.

A

Termination Penalty

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6
Q

A ______ _______ guarantee provides assurance by the lessee to the lessor relative to the minimum value of an underlying asset at the end of the lease term.

A

Residual Value

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7
Q

For lessor, a lease type that meets one or more of the five lease classification criteria.

A

Sales-Type Lease

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8
Q

Type of lease, other than finance, for the lessee that is basically a rental agreement.

A

Operating (Lease)

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9
Q

Type of lease that is twelve months or less and has no purchase option.

A

Short Term (Lease)

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10
Q

Items given by lessor to lessee to encourage them to sign a lease contract.

A

Incentive

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11
Q

An agreement by lessor of property, plant, or equipment to allow use by lessee for a period of time in return for payment.

A

Lease

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12
Q

A lease provision in contract where lessee can buy leased property at specified price.

A

Purchase Option

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13
Q

Cost incurred to form/begin a lease.

A

Initial Direct Costs

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14
Q

For lessee, a lease type that meets one or more of the five lease classification criteria.

A

Finance (Lease)

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15
Q

Periodic lease payment that are stable or charge based on predetermined rate.

A

Fixed

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16
Q

Renter who have right of use property, plant, or equipment owned by the lessor for a period of time.

A

Lessee