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Definition of Direct lease
lease in which the lessor purchases new equipment from the manufacturer and leases it to the
The lease payment at which a party to a prospective lease is indifferent between
A lease obligation that has to be capitalized on the balance sheet.
A lease's internal rate of return.
A method of cash budgeting based on detailed estimates of cash receipts and cash
Commercial paper sold directly by the issuer to investors.
Selling a new issue not by offering it for sale publicly, but by placing it with one of several
For foreign exchange, the number of U.S. dollars needed to buy one unit of a foreign currency.
Buyers and sellers seek each other directly and transact directly.
The purchase by investors of securities directly from the issuer.
A cross-border lease in which the disparate rules of the lessor's and lessee's countries let
Long-term, non-cancelable lease.
The acquisition abroad of physical assets such as plant and equipment, with
See: financial lease.
Also called rental lease. lease in which the lessor promises to maintain and insure the
For foreign exchange, the number of units of a foreign currency needed to buy one U.S.$.
A long-term rental agreement, and a form of secured long-term debt.
The payment per period stated in a lease contract.
A lease arrangement under which the lessor borrows a large proportion of the funds needed
Limitation on sale-and-leaseback
A bond covenant that restricts in some way a firm's ability to enter into
The payment per period stated in a lease contract.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
Safe harbor lease
A lease to transfer tax benefits of ownership (depreciation and debt tax shield) from the
Sale and lease-back
Sale of an existing asset to a financial institution that then leases it back to the user.
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
A contract that qualifies as a valid lease agreement under the Internal Revenue code.
Costs that are readily traceable to particular products or services.
Costs that are necessary to produce a product/service but are not readily traceable to particular products or services â€“ see overhead.
A method of preparing the operating section of the Statement of Cash Flows that uses the companyâ€™s actual cash inflows and cash outflows.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
A method of preparing the operating section of the Statement of Cash Flows that does not use the companyâ€™s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
The cost of improvements made to property that the company leases.
a cost that is distinctly traceable to a particular cost object
see variable costing
the time spent by individuals who work specifically
a readily identifiable part of a product; the cost of such a part
a service department cost allocation approach
a cost that cannot be traced explicitly to a particular
A lease in which the lessee obtains some ownership rights over the asset
A cost that can be clearly associated with specific activities or products.
A costing methodology that only assigns direct labor and material costs
Labor that is specifically incurred to create a product.
Direct materials cost
The cost of all materials used in a cost object, such as finished goods.
Direct materials mix variance
The variance between the budgeted and actual mixes of
A member of a companyâ€™s Board of directors.
A cost that is not directly associated with a single activity or event. Such
The cost of any labor that supports the production process, but which is
This is any upgrade to leased property by a lessee that will be
The rental of an asset from a lessor, but not under terms that would
Long-term rental agreement.
Taxes paid by consumers when they buy goods and services. A sales tax is an example.
The direct transfer of payroll funds from the company bank account
Accounting and Auditing Enforcement Release (AAER)
Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws.
A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.
Advertising designed to elicit sales to customers who can be
A format for the operating section of the cash-flow statement that
Official SEC record of a settlement or a hearing scheduled before a civil
lease accounting used by a manufacturer who is also a lessor. Up-front gross
One where substantially all of the benefits and risks of ownership are transferred to the lessee. It must be reflected on the company's balance sheet as an asset and corresponding liability.
lease in which the service provided by the lessor to the lessee is limited to financing equipment. All other responsibilities related to the possession of equipment, such as maintenance, insurance, and taxes, are borne by the lessee. A financial lease is usually noncancellable and is fully paid out amortized over its term.
The consideration paid by the lessee to the lessor in exchange for the use of the leased equipment/property. Payments are usually made at fixed intervals.
One where the risks and benefits, as well as ownership, stays with the lessor.
Sale and Leaseback
An agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
A system where funds are electronically credited to your account by a financial institution or a payroll service. For example, you can arrange with your employer to have your pay cheques automatically deposited into your no fee bank account.
InteracÂ® Direct Payment
Instead of paying with cash or a credit card, Interac direct Payment allows you to pay for your purchase with a debit card, such as your bank card. The amount of the purchase is electronically debited, or withdrawn, from your bank account (see debit card).
pre-authorized direct deposit
A system where funds are electronically credited to your account by a financial institution or a payroll service.
Lease (Credit Insurance)
Contract granting use of real estate, equipment or other fixed assets for a specified period of time in exchange for payment. The owner or a leased property is the lessor and the user the lessee.
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