WGU D105 Intermediate Accounting III - accounting for Leases/ (Top 2024/2025 EXAM REVIEW PAPERS / GRADED A+/ 100% Accurate)

WGU D105 Intermediate Accounting III - accounting for Leases The user, or the borrower, of an asset in a leasing arrangement is referred to as the a. lessee. b. lessor. c. both lessee and lessor. d. neither lessee nor lessor. -Ans: a The owner of an asset in a leasing arrangement is referred to as the a. lessee. b. lessor. c. both lessee and lessor. d. neither lessee nor lessor. -Ans: b Which of the following is an advantage of captive leasing companies over the other players in the leasing market? a. they have access to low-cost funds allowing them to purchase assets at lower cost. b. they are good at developing innovative contracts that help avoid accounting problems. c. they provide leasing arrangements for a wider range of products than the parent company's product line. d. they have the point-of-sale advantage in finding leasing customers. -Ans d Which of the following is an advantage of banks over the other players in the leasing market? a. they have access to low-cost funds allowing them to purchase assets at lower cost. b. they are good at developing innovative contracts that help avoid accounting problems. c. they provide leasing arrangements for a wider range of products than the parent company's product line. d. they have the point-of-sale advantage in finding leasing customers. -Ans a Which of the following is an advantage of independent companies over the other players in the leasing market? a. they have access to low-cost funds allowing them to purchase assets at a lower cost. b. they are good at developing innovative contracts that help avoid accounting problems. c. they provide leasing arrangements for a wider range of products than the parent company's product line. d. they have the point-of-sale advantage in finding leasing customers. -Ans b A company is looking for additional guidance on which equipment to lease. The company is using a lessor that has knowledge about the parent's product that can be passed on to the company. Which lessor is being used by the lessee? a. independents. b. credit unions. c. banks. d. captive leasing companies. -Ans d A company is looking for additional guidance on which equipment to lease. The company is using a lessor that has the advantage of being able to purchase assets at a lower cost than their competitors. Which lessor is being used by the lessee? a. independents. b. credit unions. c. banks. d. captive leasing companies. -Ans c