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Q: If the lessee and lessor use different interest rates to account for a capital lease then total expenses for the lessee will be different from the lessor's total revenues?
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What are the subdivisions of owners equity?

the four subdivision of owner's equity are: Capitals Withdrawls Expenses Earnings (Revenues) DO NOT MISTAKEN ACCOUNT PAYABLES & RECEIVABLES AS BEING EXPENSES AND EARNINGS or REVENUES :)


What are The four subdivisions of owner's equity?

the four subdivision of owner's equity are: Capitals Withdrawls Expenses Earnings (Revenues) DO NOT MISTAKEN ACCOUNT PAYABLES & RECEIVABLES AS BEING EXPENSES AND EARNINGS or REVENUES :)


When does a revenue account have a debit balance?

When your expenses are more than your revenues, the revenue account will be a debit balance. You have lost money!


Does a revenue account have a debit balance?

When your expenses are more than your revenues, the revenue account will be a debit balance. You have lost money!


Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category?

Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.


What would you find on a profit and loss account?

In profit and loss account normally list all in the revenues and expenses and profit or loss for any particular fiscal year of company.


Is interest expenses an asset or a liability?

In accounting, interest and other expenses are neither; they are a contra-equity account. This means that as expenses increase, the owners have less equity. Expenses should normally be treated as a debit account, so as you record interest expenses, you should be crediting either an asset or a liability at the same time.


Why does expense account require a debit entry to increase equity?

A debit to an equity account, or in this case an expense account, will increase the expense account. An increase to this account means the more expenses you have. The more expenses mean the less money you earn and therefore you make less money in your income statement because revenues - expenses = income


What is cash interest expense?

A cash interest expense is a cash amount that accrues interest. These types of expenses vary depending on the type of account and the money present in the account.


The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the retained earnings account?

Income summary account


The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to or subtracted from the owner's capital account is?

Income Summary Account


Revenues total 10200 expenses total 7300 and the owners withdrawals account has a balance of 2600 What is the balance in the income summary account prior to closing net income or net loss?

5500