You realize you are using the right file editor when such a simple task as Classify dropdown lease does not take more time than it should. Editing papers is now a part of many working operations in numerous professional fields, which explains why accessibility and simplicity are crucial for editing resources. If you find yourself studying manuals or searching for tips about how to Classify dropdown lease, you may want to find a more easy-to-use solution to save time on theoretical learning. And here is where DocHub shines. No training is needed. Just open the editor, which will guide you through its principal functions and features.
A workflow gets smoother with DocHub. Make use of this instrument to complete the files you need in short time and take your efficiency to the next level!
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