A ____________ is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.

Related MCQs

• ____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.
• In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.
• __________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
• ______________ is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
• A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.
• Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.
• __________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.
• All business combinations must be treated as _________ for accounting purposes.
• The objective of ________________is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.
• ______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it’s resources.