Lease Financing Homework Help

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1. When leasing, some business people consider that the risk of obsolescence and inflexibility is being transferred from the lessee to the lessor. How is the lessor induced to accept higher risk and greater inflexibility?
2. The Buildings account would include everything except
A. Architects’ Fees B. The Cost of Sidewalks C. Building Permits D. Foundation Preparation

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3. Selected accounts from the ledger of Hughes Company appear below. For each account, indicate the following: (a) In the first column at the right, indicate the nature of each account, using the following abbreviations: Asset – A Revenue – R Liability – L Expense – E None of the above – N (b) In the second column, indicate the increase side of each account by inserting Dr. or Cr.
4. How is the lessor induced to accept higher risk and greater inflexibility?

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