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.
D
You might also like to view...
Which of the following activities related to payroll is not an effective control plan?
a. Paychecks should be drawn on an imprest payroll bank account. b. Approve imprest clearing check. c. Approve attendance time data and job time data. d. After their preparation, paychecks should be delivered directly to the employees' supervisors for distribution to the employees.
The process of coordinating scheduling decisions made by any member of a supply chain with the decisions of other supply chain partners is called ______.
A. supply chain scheduling B. supply partners scheduling C. decision scheduling D. hierarchical scheduling
Which of the following is true about exemptions for an individual in a Chapter 7 bankruptcy?
A) Exemptions are always determined by state law. B) The state exemptions, where present, generally allow the debtor to keep fewer assets than under federal law. C) The federal statutory exemptions apply in all cases. D) The federal law allows states to set their own exemptions, which can be either mandatory or optional in place of the federal exemptions.
In order for the weighted center of gravity method to yield an optimal solution all of the transportation costs in the area must be identical
Indicate whether the statement is true or false.