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Natasha2012 [34]
3 years ago
6

Airline F leases all its aircraft under finance leases. Airline O leases all its aircraft under operating leases. Assuming that

the two airlines report under US GAAP and are otherwise identical except for the mentioned lease classifications, which of the following comments is true?
a. Airline O has lower rent expense reported on its income statement
b. Airline F has a lower EBITDA margin
c. None of the listed answers
d. Airline O has more lease liabilities
e. Airline O has less lease assets at the inception of the lease
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer: e. Airline O has less lease assets at the inception of the lease

Explanation:

With operating leases, the entity leasing the asset or the lessee, does not get the rights to ownership of the asset being leased but instead simply pay a fee or sort of rent for leasing the asset.

With a finance lease however, ownership is passed to the lessee for the lease period and the lessee would have to depreciate the asset and record it in its books.

Airline O will therefore not record any assets but Airline F will. This means that Airline F will have more assets than O because it had to record its assets but O did not.

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The annual average CPI for 2016 was 240.5. If the CPI for 2010 was 218.1, then what was the inflation rate for the years 2010-20
aksik [14]

Answer: 9.31%

Explanation:

The Consumer Price Index (CPI) is able to check the price change per year by pricing a fixed basket of goods in different years. It can be used to calculate inflation with the formula;

Inflation rate = (CPI target year - CPI base year / CPI base year) *100

= \frac{240.5-218.1}{218.1} * 100%

=9.31%

8 0
3 years ago
Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie
Olenka [21]

Answer: Points of indifference

Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.

In the given case, the company must have  build point of indifference before launching of new product, and must have expected higher profits than normal beer.

4 0
3 years ago
1. What age group represents the highest percentage of taxpayers in 2016?
Salsk061 [2.6K]
Out of the roughly 142 million filers, people under the age of 35 account for 35 percent of all returns but just 17 percent of total AGI. By far, the largest number of filers are between the ages of 35 and 55, and they account for nearly half of total AGI
8 0
3 years ago
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Leno4ka [110]
The answer should be .com
5 0
3 years ago
True or false: account analysis involves a detailed analysis of what cost behavior should be, based on an industrial engineer's
lana66690 [7]

We can actually deduce here that "account analysis involves a detailed analysis of what cost behavior should be, based on an industrial engineer's evaluation" is false.

<h3>What is account analysis?</h3>

Account analysis is actually known as the process of a detailed line of items that are recorded in the financial statement are closely evaluated and examined by a professional auditor or accountant.

When account is analyzed, it helps account owners to easily identify trends. It also shows how an account is performing.

Learn more about analysis on brainly.com/question/24803971

#SPJ1

4 0
2 years ago
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