Companies frequently acquire assets through lease financing. U.S. GAAP has explicit standards on proper accounting of leases. What is a lease? Discuss the determinants of classifying a lease as a capital or operating lease. Some companies manipulate a leasing agreement in such a manner so that the lease is classified as operating. Why would a company do so? Would IFRS adoption prevent this type of manipulation from occurring? Equity typically represents one's claims to the resources (assets) of an entity. As an investor in a corporation, different types of equity investments are available. How do common and preferred stock differ? Within each of these classification of equity--common stock and preferred stock--there are different types of each stock. As an investor and a consultant to your clients investing in such securities, what factors would you consider in making the best investing decision for you or your client's needs? Include in your discussion the characteristics of each of the two classes of stock as well as a discussion of the different types of each class of stock.