From the course: Accounting Foundations: Leases
Join today to access over 24,900 courses taught by industry experts.
Leases within operating and finance structure
From the course: Accounting Foundations: Leases
Leases within operating and finance structure
- We need some numerical examples to show the impact that the accounting for leases can have on how a financial analyst views a company. We will start with a hypothetical company so that we can keep the numbers simple. - [Man With Glasses] This information comes from the financial statements of hypothetical Company T. Total liabilities, $80,000, total assets, $200,000, and sales, $500,000. - [First Man] All of these numbers are included in Company T's reported financial statements. Sales are reported in the income statement. And liabilities and assets they're reported in the balance sheet. - [Man With Glasses] In addition, Company T is using a large number of assets under lease contracts. - Of course, Company T has no legal ownership of these leased assets, but Company T has signed long term non-cancelable lease contracts that give the company the exclusive right to use these assets. - Using the four lease classification criteria in the traditional US lease…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.