Exam 13: Leases

In a lease that is recorded as a sales-type lease by the lessor,the difference between the gross investment in the lease and sum of the present values of the components of the gross investment should be recognized as income

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Question 1

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What is a leveraged lease? How do lessees and lessors record leveraged leases?

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Question 2

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A leveraged lease is a special leasing arrangement involving three different parties: 1)the equity holder-the lessor; 2)the asset user-the lessee; and 3)the debtholder-a long-term financer.The lessee records the lease as a capital lease.The lessor records the lease as a direct financing lease.

The appropriate valuation of an operating lease on the statement of financial position of a lessee is

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Question 3

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What is the primary accounting issue for lessors?

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Question 4

For a six-year capital lease,the portion of the minimum lease payment in the third year applicable to the reduction of the obligation should be

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Question 5

Generally accepted accounting principles require that certain lease agreements be accounted for as purchases.The theoretical basis for this treatment is that a lease of this type

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Question 6

Office equipment recorded under a capital lease containing a bargain purchase option should be amortized

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Question 7

Under the capital method of accounting for leases the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor

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Question 8

Which of the following would indicate that the lessee should not classify a lease as a capital lease?

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Question 9

For a sales-type lease,the net investment is equal to

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Question 10

When does the lessee report executory costs as an expense?

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Question 11

A net operating loss carryover that occurs in a company's second year of operations

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Question 12

If the lessor incurs initial direct cost to bring about the lease,when are those costs expensed in total during the first year of the lease term?

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Question 13

What is the difference between a sales-type and a direct financing type of capital lease?

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Question 14

For the lessor to recognize a lease as a sales-type lease,the following must occur.

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Question 15

When a lease contract does not transfer title to the lessee,there is no bargain purchase option,and the lease term is not at least 75 percent of the estimated useful life of the leased asset.

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Question 16

What is the primary accounting issue for lessees?

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Question 17

When a sale and leaseback occurs

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Question 18

When measuring the present value of future rentals to be capitalized as part of the purchase price in a lease that is be accounted for as a purchase,identifiable payments to cover taxes,insurance,and maintenance should be

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Question 19

Showing 1 - 19 of 19

In a lease that is recorded as a sales-type lease by the lessor,the difference between the gross investment in the lease and sum of the present values of the components of the gross investment should be recognized as income

What is a leveraged lease? How do lessees and lessors record leveraged leases?

The appropriate valuation of an operating lease on the statement of financial position of a lessee is

What is the primary accounting issue for lessors?

For a six-year capital lease,the portion of the minimum lease payment in the third year applicable to the reduction of the obligation should be

Generally accepted accounting principles require that certain lease agreements be accounted for as purchases.The theoretical basis for this treatment is that a lease of this type

Office equipment recorded under a capital lease containing a bargain purchase option should be amortized

Under the capital method of accounting for leases the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor

Which of the following would indicate that the lessee should not classify a lease as a capital lease?

For a sales-type lease,the net investment is equal to

When does the lessee report executory costs as an expense?

A net operating loss carryover that occurs in a company's second year of operations

If the lessor incurs initial direct cost to bring about the lease,when are those costs expensed in total during the first year of the lease term?

What is the difference between a sales-type and a direct financing type of capital lease?

For the lessor to recognize a lease as a sales-type lease,the following must occur.

When a lease contract does not transfer title to the lessee,there is no bargain purchase option,and the lease term is not at least 75 percent of the estimated useful life of the leased asset.

What is the primary accounting issue for lessees?

When a sale and leaseback occurs

When measuring the present value of future rentals to be capitalized as part of the purchase price in a lease that is be accounted for as a purchase,identifiable payments to cover taxes,insurance,and maintenance should be

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirement and Ethical Responsibilities

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