The interest rate applied to the net lease receivable is the rate that amortizes the gross lease receivable to zero at the end of the lease term. the rate that amortizes the net lease receivable to zero at the end of the lease term. the implicit interest rate. the incremental borrowing rate.

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31-05-2022
Business

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The interest rate applied to the net lease receivable is the rate that amortizes the gross lease receivable to zero at the end of the lease term. the rate that amortizes the net lease receivable to zero at the end of the lease term. the implicit interest rate. the incremental borrowing rate.

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Tundexi Tundexi · Answer 1 · 2022-06-14T17:58:00+02:00

The implicit interest rate is used when an interest rate applies to the net lease receivable that amortizes the gross lease receivable to zero at the end of the lease term.

What is an implicit interest rate?

This refers to the interest rate that are not specifically stated in a business transaction.

This kind of interest rate applies to the net lease receivable that amortizes the gross lease receivable to zero at the end of the lease term.

Therefore, the Option D is correct.

Read more about implicit interest rate

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