Chp 17 Accounting for Leases Flashcards
Owner who has rented out the use of their property, plant, or equipment for a period of time.
Lessor
Asset account name recorded by lessee for present value of lease payment.
Right Of Use (Asset)
Periodic lease payments that vary because of changes in factors or circumstances after lease commencement date.
Variable
Additions to leased property that revert back to lessor at end of lease
Lease Hold Improvements
Payment for terminating a lease early by lessee.
Termination Penalty
A ______ _______ guarantee provides assurance by the lessee to the lessor relative to the minimum value of an underlying asset at the end of the lease term.
Residual Value
For lessor, a lease type that meets one or more of the five lease classification criteria.
Sales-Type Lease
Type of lease, other than finance, for the lessee that is basically a rental agreement.
Operating (Lease)
Type of lease that is twelve months or less and has no purchase option.
Short Term (Lease)
Items given by lessor to lessee to encourage them to sign a lease contract.
Incentive
An agreement by lessor of property, plant, or equipment to allow use by lessee for a period of time in return for payment.
Lease
A lease provision in contract where lessee can buy leased property at specified price.
Purchase Option
Cost incurred to form/begin a lease.
Initial Direct Costs
For lessee, a lease type that meets one or more of the five lease classification criteria.
Finance (Lease)
Periodic lease payment that are stable or charge based on predetermined rate.
Fixed
