Document editing comes as a part of numerous occupations and jobs, which is the reason instruments for it should be available and unambiguous in terms of their use. An advanced online editor can spare you plenty of headaches and save a considerable amount of time if you have to Classify company lease.
DocHub is a great example of a tool you can grasp very quickly with all the useful functions accessible. Start modifying immediately after creating an account. The user-friendly interface of the editor will help you to locate and employ any feature in no time. Feel the difference with the DocHub editor as soon as you open it to Classify company lease.
Being an integral part of workflows, document editing should remain straightforward. Using DocHub, you can quickly find your way around the editor making the desired alterations to your document without a minute lost.
in this video were going to discuss the five tests that are used to determine whether a lease should be classified as an operating lease or as a finance lease so if you remember with the newly standard all leases that are longer than one year in length need to be capitalized that means that the lessee is going to recognize an asset a right of use asset on their balance sheet and then theyre going to recognize a liability for the lease payments that they have to pay okay but then the question is well how do we classify this lease because even though we know that okay we have to book an asset we have to book a liability theres still two different types of leases and it can affect what the income statement affects our right whether were recognizing interest expense or an amortization expense or just a lease expense right now talk about that the accounting a little more in a future video but for right now we just need to focus on how do we classify how do we even know what is the fina