Answer:
A) the lessee records an asset and a liability for the present value of lease payments.
Explanation:
In a finance lease, the lessee business must estimate the present value of its obligations under the lease contract (using the lease's interest rate as the discount rate) and record it in the balance sheet as:
- a debit entry under the fixed asset account
- a credit entry under the capital lease liability account
Answer:
scheduling technique
Explanation:
Project Evaluation Review Technique and Critical Path
Method (CPM) are scheduling techniques used to plan, schedule,
budget and control the many activities associated with projects.
Projects are usually very large, complex, custom products that
consist of many interrelated activities to be performed either
concurrently or sequentially.
Answer:
Reserves
Explanation:
Risk is any uncertain event with positive or negative consequences on a project. Contingency costs are related to risks, and therefore cannot be disregarded in risk management within a project. It is essential that management plan and prevent for the project to occur in a predictable and effective manner.
Answer:
Consider the following calculations
Explanation:
- PMT(Interest_Rate/Num_Pmt_Per_Year,Loan_Years*Num_Pmt_Per_Year,Loan_Amount)
- If you input these values on a financial calculator, PMT = 2011.56
- Balance of the loan at the end of 13 years = 209798.54
- Interest paid in the 6th year = 21464.51
- 224th Payment Principal = 722.70