Copyright

Ch 7: Financing & Leasing in Accounting

About This Chapter

Ensure you have a quality understanding of financing and leasing in accounting by exploring this chapter's entertaining lessons. If you're studying for a test, use our multiple-choice quizzes to confirm your knowledge of these accounting concepts.

Financing & Leasing in Accounting - Chapter Summary

Each lesson in this chapter provides a comprehensive examination of financing and leasing in accounting. Gain greater insight into the total cost of ownership, capital lease in accounting and other related concepts. Once you've completed this chapter, you will be able to:

  • Describe trade credit, lines of credit and other sources of short-term financing
  • List and discuss various sources of long-term financing
  • Explain the importance and benefits of the total cost of ownership
  • Define and share an example of the operating lease in accounting
  • Discuss the requirements of the capital lease in accounting

Explore the lessons in any sequence you desire, and feel free to visit as often as you'd like. Around-the-clock computer and mobile access lets you study anytime and from any location with an Internet connection. Multiple-choice quizzes and a chapter exam are available to check your knowledge of financing and leasing in accounting. Use the Dashboard to keep track of your progress and submit any lesson topic questions you have to our experts.

5 Lessons in Chapter 7: Financing & Leasing in Accounting
Test your knowledge with a 30-question chapter practice test
Sources of Short-Term Financing

1. Sources of Short-Term Financing

Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.

Sources of Long-Term Financing

2. Sources of Long-Term Financing

Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.

Total Cost of Ownership: Importance & Benefits

3. Total Cost of Ownership: Importance & Benefits

After reading this lesson, you'll understand why some people and companies choose to use the total cost of ownership when deciding whether to make a purchase or not instead of the purchase price.

Operating Lease in Accounting: Definition, Calculation & Example

4. Operating Lease in Accounting: Definition, Calculation & Example

In this lesson, we will identify the nature of leases, the requirements that must be met to treat a lease as an operating lease, and how to account for an operating lease.

Capital Lease in Accounting: Definition, Requirements & Example

5. Capital Lease in Accounting: Definition, Requirements & Example

In this lesson, we'll discuss the nature of capital leases. We'll look at what it means to 'own' an asset from an accounting standpoint so that we can understand why the accounting for capital leases differs from the accounting for operating leases. We'll then look at this accounting and some of its complexities.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support