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Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be Question 8 A direct financing lease differs from a sales-type lease in that Question 9 A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to Question 10 When a lessee makes periodic cash payments for an operating lease, which of the following accounts is increased? Question 11 The lessee should classify a non-cancellable long-term lease as a capital lease if Question 12 A lease will be treated as a direct financing lease by the lessor when Question 13 The corporate form of organization is important to the U.S. economy because Question 14 The authorized shares of capital stock is the number of shares Question 15 In the financial statements, dividends in arrears on cumulative preferred stock should be Question 16 In accounting for a stock split, a company usually Question 17 Which of the following types of corporations is owned or operated by a government unit? Question 18 Under the fair value method, the grant date is the date Question 19 When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to