Describe the two types of capital leases that exist from the lessor’s point of view.
What will be an ideal response?
ANSWER:
The two types of capital leases are sales leases and financing leases. A sales-type lease arises when a manufacturer or seller of merchandise uses leasing as a financing instrument to effect what is considered to be the equivalent of a sale. The accounting treatment is to make the transaction look like the equivalent of a sale with vendor financing. A financing-type lease occurs when a third-party finances a lease rather than a manufacturer or seller. In such situations, the financing party is the lessor and the accounting attempts to make the lease look like a loan with income realized through implicit interest in each lease payment.
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Most bacteria live in a solution that is hypotonic relative to the cytoplasm of the bacteria. This means that the bacterial cell is constantly taking in water. The cell wall of a bacterium is a peptidoglycan polymer that is tightly cross-linked. This would therefore function to
A. confirm a close relationship to plant cells that have a similar structure and live in hypotonic solutions. B. provide a rigid wall that prevents the cell from shrinking. C. provide a rigid wall that prevents the cell from swelling. D. make all bacteria fairly uniform in metabolic chemistry. E. regulate the flow of most molecules into and out of the bacterial cell.
In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier?
A) a journal entry, a supplier invoice, and a description of the goods being purchased B) a receiving report, an invoice, and a purchase order C) a purchase order, a journal entry, and a price catalog D) a supplier invoice, a bill of lading, and the supplier's financial statements
For a manufacturer, materials storage is a value-adding activity
Indicate whether the statement is true or false
A security is considered liquid if it can be sold, regardless of the time it takes to make the sale
Indicate whether the statement is true or false