Q1. Which of the following statements about leasing is least accurate?

A)   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.

B)   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.

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

Q2. Opal Company manufactures sophisticated machines and then leases them to its customers. If the leases are structured in such a way that they are treated as finance leases for accounting purposes, which of the following is least likely to be higher than it would be if Opal treated the leases as operating leases?

A)   net cash flow.

B)   sales.

C)   the total asset turnover ratio.

Q3. In a sales-type lease, a lessor recognizes a gross profit at the inception of the lease equaling the:

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

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

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

Q4. 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.

Q5. 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.

Q6. For a lessor, assuming all other factors are constant, a sales-type lease will result in higher:

A)   cash flow from investing (CFI) as compared to a direct financing lease.

B)   interest revenue as compared to a direct financing lease.

C)   cash flow from operations (CFO) as compared to a direct financing lease.

答案和详解如下：

Q1. Which of the following statements about leasing is least accurate?

A)   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.

B)   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.

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

Correct answer is A)

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.

Q2. Opal Company manufactures sophisticated machines and then leases them to its customers. If the leases are structured in such a way that they are treated as finance leases for accounting purposes, which of the following is least likely to be higher than it would be if Opal treated the leases as operating leases?

A)   net cash flow.

B)   sales.

C)   the total asset turnover ratio.

Correct answer is A)

From the lessor’s standpoint, sales and revenue recognition occur earlier when leases are treated as capital, and not operating leases, which enhances profitability and turnover ratios. Net cash flow is the same under either method.

Q3. In a sales-type lease, a lessor recognizes a gross profit at the inception of the lease equaling the:

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

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

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

Correct answer is C)         

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.

Q4. 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.

Correct answer is B)

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.

Q5. 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.

Correct answer is A)

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

Q6. For a lessor, assuming all other factors are constant, a sales-type lease will result in higher:

A)   cash flow from investing (CFI) as compared to a direct financing lease.

B)   interest revenue as compared to a direct financing lease.

C)   cash flow from operations (CFO) as compared to a direct financing lease.

Correct answer is A)

The sales-type lease has higher CFI (collection of lease receivable is considered a CFI) and lower CFO (interest revenue is considered a CFO) as compared to a direct financing lease. This results from the difference in the implicit rate among the two lease types.

LT - Liabilities & leases

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