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Question
When accounting for a capital lease, depreciation expense is equal to the
A. lease payments.
B. principal portion of the lease payments.
C. normal depreciation computed on the depreciable base of the asset.
D. straight-line depreciation only on the full amount of the leased asset.
Answer
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Related questions
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Because covenant compliance can be jeopardized by mandated changes in accounting principles, many loan agreements have financial covenants that rely on the accounting rules in place when the loan is first granted.
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Commercial lending agreements may contain provisions that are designed to protect the lender from a deterioration of the borrower's creditworthiness.
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C. long-term incentives.
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B. affirmative covenants.
C. negative restrictions.
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B. borrowers.
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B. the consignee.
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