Operating Leases
Most leases are not going to be classified as operating leases because of changes made by which of the following government bodies?
IASB
For a lease to be classified as an operating lease, the lease term must be less than
75
For a lease to be classified as an operating lease, the present value of the lease payments must be less than
90
In addition to the lease criteria, which of the following is a characteristic and classification category for leases?
Benefits Tax
What type of account is used in the journal entry when an operating lease contains different payment amounts?
Cash
Which of the following financial statements shows the effects of an operating lease?
Statement of cash flow
What method is used to calculate the rent expense amount for operating leases when the payment amount changes?
Straight line
For a lease to be classified as an operating lease, a bargain purchase option
is not
An operating lease is considered a/an
off-balance sheet
lease, ownership of the asset must be retained by the lessor during and after the lease term.
operating