Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Typical examples of assets leased as a finance lease include all of the following except:

Short-term office supplies leased for less than 12 months

Manufacturing equipment leased with a bargain purchase option

Vehicles leased for a period covering most of their economic life

Office buildings leased for the majority of their useful life

Previous problemNext problem

Verified step by step guidance

Understand the concept of a finance lease: A finance lease is a lease in which the lessee assumes substantially all the risks and rewards of ownership. This typically involves long-term leases or leases with specific conditions such as a bargain purchase option.

Review the characteristics of assets typically leased under a finance lease: These include assets that are leased for a significant portion of their useful life, assets with a bargain purchase option, or assets that are integral to the lessee's operations.

Analyze each option provided in the problem: Determine whether the asset meets the criteria for a finance lease. For example, manufacturing equipment with a bargain purchase option and vehicles leased for most of their economic life are typical examples of finance leases.

Consider the exception: Short-term office supplies leased for less than 12 months do not meet the criteria for a finance lease because they are temporary and do not involve substantial risks and rewards of ownership.

Conclude that the correct answer is the exception: Short-term office supplies leased for less than 12 months, as they do not align with the characteristics of a finance lease.