Defining Lease Concepts Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the following two lists. Required Match each term, 1 through 15 with the most appropriate description a through o. Term Description of Term 1. Identified asset a. Unavoidable costs of executing a lease agreement. 2. Right to use b. Date on which an underlying asset is made available to lessee. 3. Lessee c. Interest rate on debt applicable to a lessee for terms similar to a lease. 4. Lessor d. Explicit or implicit specification of a leased asset. 5. Lease commencement e. Charge by a lessor for a distinct good or service. 6. Finance lease f. Lessee lease classification where at least one lease criterion is met. 7. Operating lease g. Entity obtaining right to use an asset. 8. Sales-type lease h. Lessor lease classification where at least one lease criterion is met. 9. Implicit lease rate i. Value at the end of a lease that a lessee is obligated to transfer to lessor. 10. Incremental borrowing rate j. Entity providing right to use an asset. 11. Nonlease component k. To direct the use of or obtain benefits of an identified asset. 12. In-substance fixed payment 1. Lease payment that fluctuates based upon a rate or index. 13. Variable payment m. Lease classification where no lease criteria are met. 14. Guaranteed residual value n. Lease payment that varies but includes a minimum payment level. 15. Initial direct costs o. Lessor desired rate of return on lease