1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semenov [28]
3 years ago
5

All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as

its own asset. B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do. C. Capital leases create a long-term liability on the balance sheet, but operating leases do not. D. For a capital lease the lessee depreciates the asset acquired under the lease, but for an operating lease the lessee does not. E. For an operating lease the lessee reports the lease payments as rental expense.
Business
1 answer:
faust18 [17]3 years ago
5 0

Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.

Explanation:

When using Capital Leases, the lessee will record the lease as if it were their own asset and as a result will also depreciate it. The lessee will also create a long term liability on their balance sheet for the asset.

Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.

You might be interested in
A misconception is a mistaken idea or thought.
e-lub [12.9K]
This is true, it is a misunderstandment
8 0
3 years ago
marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses a
Scorpion4ik [409]

The correct answer is $35750

The amount of depreciation that should be allocated to drilling for the current period is $35750

<h3>How does depreciation work?</h3>

Depreciation is the process of subtracting the entire cost of an expensive item you purchased for your company. However, you write off portions of it over time rather than completing it altogether in one tax year. Depreciating assets gives you more control over your budget because you may schedule how much money is written off annually.

<h3>How much depreciation should be devoted to drilling throughout the current time frame?</h3>

Office costs: Salaries are $30,000, depreciation is $20,000, and advertising is $40,000. The total number of employees for drilling and grinding is 2500.

The overall net sales for drilling are 375 000, for grinding they are 450 000.

Drilling costs are 75,000, grinding costs are 125,000, and overall costs are 200000.

then,

Salaries: $30,000×\frac{1000}{2500}=$12,000

Depreciation: $20,000×\frac{75000}{200000}=$7,500

Advertising: $40,000×\frac{325000}{800000} =$16,250

Total $35,750

To know more about depreciation work visit:

brainly.com/question/14864259

#SPJ4

question options are wrong the correct question is:

marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses are allocated to the two operating departments using different allocation bases. the following information is available for the current period: office expenses total allocation base salaries $ 30,000 number of employees depreciation 20,000 cost of goods sold advertising 40,000 percentage of total sales department number of employees sales cost of goods sold drilling 1,000 $ 325,000 $ 75,000 grinding 1,500 475,000 125,000 total 2,500 $ 800,000 $ 200,000 the amount of depreciation that should be allocated to drilling for the current period is: multiple choice $25,000. $12,500. $7,500. $20,000. $35750. this is a correct option.

8 0
1 year ago
Why delegate authority and not responsibility​
MArishka [77]

Answer:

Authorities can be assigned, but never delegated obligations. Subordinates are responsible for "results" and managers are responsible for their subordinates ' actions. You can't be held responsible for a mission if you have little competence.

Explanation:

The delegation lets you pass the power to professional team members to work on more urgent matters. But you are still responsible for doing these in the right way. It is therefore necessary to periodically track the status or interact with the team member

Let us recognize some of the fundamental principles to be observed in delegating: 1. The delegated authority to subordinates should be adequate to achieve the desired performance.

2. The power may be delegated but never assigned responsibility. Subordinate accountability is "efficiency" and managers are "responsible for their subordinates ' activities."

3. A duty can not be held accountable if it only has limited authority. A balance between authority and responsibility must be created.

4. A single superior's presence brings to mind the subordinate more personally responsible.

8 0
3 years ago
The reason for a(n) ____ inventory strategy is to minimize tying up large sums of money for long periods of time and, in additio
Sav [38]

The reason for a <u>just-in-time</u> inventory strategy is to minimize tying up large sums of money for long periods of time and, in addition, to reduce the cost associated with inventory management.

inventory management enables agencies to discover which and what kind of inventory to order at what time. It tracks stock from buy to the sale of products. The exercise identifies and responds to tendencies to ensure there may be constantly sufficient inventory to satisfy patron orders and the right caution of a shortage.

Discipline inventory management generally known as stock management is the feature of know-how of the stock mix of a corporation and the exclusive demands on that inventory.

The three maximum popular inventory management strategies are the frenzy method, the pull approach, and the simply-in-time technique. these techniques offer businesses distinct pathways to assembly consumers call for.

Learn more about inventory management here brainly.com/question/13439318

#SPJ4

5 0
1 year ago
Which best describes the business, management, and administration career cluster?
Arte-miy333 [17]

Answer:

are careers that are focused on running businesses.

Explanation:

The Business, Management, and Administration career cluster includes business skills essential to efficient, productive operations for any company (Administrative and information support, Business analysis, Business, financial management and accounting, Human resources, Management..) The Business, Management, and Administration career cluster is best described with the following: These are careers that are focused on running businesses.

Correct answer: A

4 0
1 year ago
Other questions:
  • Suppose that the presidents of two auto manufacturing companies exchange text messages in which they discuss jointly raising pri
    8·1 answer
  • The demand for air travel between two cities doubles. the elasticity of the supply of air travel between these cities will​ ____
    11·2 answers
  • Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a
    7·1 answer
  • 3. How have you contributed to solving a challenge and to implementing change or reform?*(Be specific and include: what aspect/s
    10·1 answer
  • In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:
    13·1 answer
  • The human resource department of Winston Memorial Hospital has played a leading role in helping the hospital become a high-perfo
    9·1 answer
  • The federal government passes a law which a company, JuneCorp, feels unjustifiably discriminates against the company and harms i
    15·2 answers
  • In Year 1, Lee Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Lee
    15·1 answer
  • Knight Company reports the following costs and expenses in May.
    8·1 answer
  • when modifying commercial buildings to meet accessibility requirements, owners should focus their attention on these four areas:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!