Ashford ACC307 2021 August Week 3 Discussion (dq1+dq2) Latest

ACC307 Intermediate Accounting III

Week 3 Discussion

DQ1 Leases [WLOs: 1, 2, 3, 4] [CLO: 3]

Prior to beginning work on this discussion, review Chapters 18 and 19 in the textbook.

Write: Prior to the 2016 lease standards, companies were able to structure a significant number of leases in order to keep them off the balance sheet. They did not report the assets and liabilities on the balance sheet; instead, they recorded rent expense each period, without any impact on assets or liabilities. Discuss financial statement effects of the 2016 standards’ requirement that lessees record the lease asset and liability on the balance sheet for almost all lease transactions.

Make sure your initial post is more than 200 words, and include an in-text citation or a brief quote from the reading material where appropriate. You may want to review the Citing Within Your Paper (Links to an external site.) resource from the Ashford Writing Center for proper use of citations.

DQ2 Lease or Purchase [WLOs: 1, 2, 3, 4] [CLO: 3]

Prior to beginning work on this discussion, review Chapters 18 and 19 in the textbook.

Write: Discuss the factors that determine whether an entity should lease or purchase an asset.

What are some of the pros and cons of leasing?

Why would an entity choose to lease instead of purchase an asset?

Give an example of a situation when it is better to purchase than lease an asset.

Make sure your initial post is more than 200 words, and include an in-text citation or a brief quote from the reading material where appropriate. You may want to review the Citing Within Your Paper (Links to an external site.) resource from the Ashford Writing Center for proper use of citations.