Reading 39: Long-Term Liabilities and Leases LOSh习题精选 2010, statements, determine, financing

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LOS h: Distinguish between a sales-type lease and a direct financing lease, and determine the effects on the financial statements and ratios of the lessors.

Which of the following statements about leasing is least accurate?

A) Firms that capitalize their leases will have lower current ratios and higher debt to equity ratios than firms that structure their leases as operating leases.

B) The interest rate implicit in a lease is the discount rate that the lessor used to determine the lease payments.

C) If the lessor is only financing the purchase of an asset, the lease is considered to be a direct financing lease and gross profits are recognized at the inception of the lease.

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With a direct financing lease, the lessor recognizes profit as interest revenue over the life of the lease. A sales-type lease allows the lessor to recognize profits at the lease inception.

 

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In a sales-type lease, a lessor recognizes a gross profit at the inception of the lease equaling the:

A) present value of the minimum lease payments less the cost of the leased asset.

B) sale price of the leased asset plus the present value of the minimum lease payments.

C) sale price of the leased asset less the present value of the minimum lease payments.

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In a sales-type lease, the implicit interest rate is such that the present value of MLP is the selling price of the asset. At the time of the lease inception, the lessor will recognize a gain equaling the present value of the MLPs, less the cost of the leased asset.

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In a direct-financing lease, the implicit rate is such that the present value of the minimum lease payments:

A) equals the sale price of the leased asset.

B) equals the cost of the leased asset.

C) is lower than the cost of the leased asset.

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In a direct-financing lease, the implicit rate is such that the present value of the MLPs equals the cost of the leased asset. Thus, at lease inception the total assets do not change and no gain is recognized.

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Which of the following statements regarding a direct financing lease is least accurate?

A) Interest revenue on the lessor's income statement equals the implicit interest rate times the lease payment.

B) The principal portion of the lease payment is a cash inflow from investing on the lessor's cash flow statement.

C) The lessor recognizes no gross profit at the inception of the lease.

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Interest revenues are calculated by multiplying the implicit interest rate by net receivables at the beginning of the period.