Q1. Which of the following is least likely one of the criteria under U.S. GAAP for classifying a lease as a finance lease? The: A) lessor retains ownership of the property at the end of the lease term. B) lease contains a bargain purchase option. C) term of the lease is 75% or more of the estimated economic life of the leased property.
Q2. Which of the following statements that classify a lease as a finance lease under U.S. GAAP is least accurate? A) Title is transferred at the end of the lease period. B) A bargain purchase option exists. C) The present value of the lease payments is at least 80% of the fair market value of the asset.
Q3. The Mader Corporation leases an asset for five years with lease payments of $10,000 per year. If Mader classifies the lease as a finance lease, which financial statements are affected at the end of the first year? A) Income statement and balance sheet only. B) Statement of cash flows, income statement, and balance sheet. C) Income statement only.
Q4. For a finance lease, the amount recorded initially by the lessee as a liability will: A) be less than the total of the minimum lease payments. B) equal the present value of the minimum lease payments at the beginning of the lease. C) equal the total of the minimum lease payments.
Q5. Which of the following statements regarding finance and operating leases is least accurate? A) During the life of an operating lease, the rent expense equals the lease payment. B) For financial reporting of finance and operating leases, no entry is required on the lessee's balance sheet at the inception of the lease. C) Asset turnover is higher for the lessee with an operating lease than a finance lease.
Q6. Which of the following statements about leases is least accurate? A) In the first years of a finance lease, the lessee's debt to equity ratio is greater than it would have been if the firm had used an operating lease. B) In the first years of a finance lease, the lessee's current ratio is greater than it would have been had the firm used an operating lease. C) All else equal, when a lease is capitalized the lessee's income will rise over the term of the lease.
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发表于 2009-1-19 11:41
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