What is a lease and how is it used as a financing vehicle? How are leases accounted for within the firm’s financial reports?

 

  • What is a lease and how is it used as a financing vehicle? How are leases accounted for within the firm’s financial reports? What is the difference between a capital lease and an operating lease? What is residual value? What are executory costs? What considerations are relevant in a lease or sell decision? Provide a discussion of all potential scenarios and the relevant accounting requirements.

 

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