Determine whether lease is an operating or capital lease
Problem:
What are the four conditions which determine whether a lease is an operating lease or a capital lease. Devise an audit program to test leases.
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What are the motivations for leasing? List reasons why a company might prefer to lease rather than buy including business reasons
Problem: What are the four conditions which determine whether a lease is an operating lease or a capital lease.
Give an example of the effect depreciation has on the decision to lease vs. buy? How is this related to the decision to buy vs. lease? Why?
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Here it would be good to include some sort of text/source definition.
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