About This Chapter
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.
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.
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.
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.
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.
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.
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Other chapters within the Association of Legal Administrators CLM Exam: Study Guide course
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- Employee Hiring & Promotion
- Employee Compensation & Benefits
- Employee Training & Motivation
- Employee Performance Appraisal & Management
- Styles of Leadership
- Organizational Development & Management
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