A lessor enters into a sales-type lease. Which of the following statements is true if the leased asset has an unguaranteed residual value?
A. The gross profit recognized is less than it would be if the residual was guaranteed.
B. The gross profit recognized is more than it would be if the residual was guaranteed.
C. The lessor should decrease the cost of goods sold by the amount of the unguaranteed residual value.
D. The gross profit is the same as it would be if the residual was guaranteed.
Answer: D
You might also like to view...
For some products, channels may actually be part of the manufacturing process by performing certain production functions. Identify this channel function
A) financing B) risk taking C) relationship management D) product assembly
Which of the following is an increasingly popular form of gathering physical evidence of fraud?
a. reviewing spending habits of the those possibly involved b. confiscating and searching computers c. tracking missing inventory through bar codes d. creating and viewing surveillance tapes
Write a brief note on blogs as an advertising medium
What will be an ideal response?
Associate union membership is linked to an employee's workplace and provides representation in collective bargaining.
Answer the following statement true (T) or false (F)