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Operating lease does not give the ownership of the asset to lessee while finance lease gives the ownership of the asset as well at the end of leasing period.
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Is capital leases an intangible asset?
No, Capital lease is for tangible assets only so it is tangible assets. Capital lease is to acquire any assets for use in business so that asset is a visible thing so not intangible asset.
What are the different methods of estimating working capital requirement of a firm?
There are two main methods of estimating working capital within a firm. These include the conventional method which measures cash flow, and the concept of operating cycle.
What is capital budget and operating budget?
operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.
Is an operating lease a long-term liability?
An operating lease is not shown on the balance sheet. They are charged directly to the profit and loss. Financial leases are the types of leases where the company will own the asset when they've paid off all the lease payments. This type of lease is shown in liabilities, it will be split showing what's due in one year (current) and the rest due after one year (long term).
What are the components of a master budget?
an operating budget and a capital budget
What are different type of leases?
1 - Operating Lease 2- Financial Lease
Are all finance leases going to be reported as operating leases?
what does yes meean it means a cmaned
How do you calculate operating working capital?
net operating capital net operating capital
Capital lease and financing lease are the same thing?
Finance lease and operating lease are different things.
What is the oldest capital still operating as a capital?
Damascus
Why is a Capital Budget prepared separately from an Operating Budget?
There are two types of expenditure due to there time period of use. 1 - Capital Expenditure 2 - Revenue/Operating Expenditure As Capital Expenditure is utilize for more then one fiscal or accounting year that's why it's budgeting method is different and it is made for different items separately. Operating Budget is made for every year and evaluation is also made for yearly basis because operating expenditures are requires to allocate every year that's why both these budgets are made separately.
What are the advantages of having rent leases?
The advantages of having rent leases are that you spend less money instead of having a mortgage. The less money you spend, the better. Rent leases are very flexible with different incomes as well.
Is capital improvement an operating expense?
no
Where are operating leases recorded in financial statements?
Operating lease is that kind of lease which is not done for entire useful life of assets and only lease rental are paid and expensed through income statement.
What is operating capital?
Maa ki choot
What is imputed interest on capital leases?
Interest considered by the IRS for tax purposes to have been paid, even if no interest was actually paid.
What is the difference between seed capital and startup capital?
Seed capital is for research and planning while startup capital is for operating expenses.
