72 which of the following is not a required disclosure by a lessee of an operating l 4313612

72 which of the following is not a required disclosure by a lessee of an operating l 4313612

72.Which of the following is not a required disclosure by a lessee of an operating lease?

a.

rental expense for the period

b.

total contingent rentals

c.

the amount of any sublease rentals

d.

the gross amount of assets under operating leases

73.The lessee's disclosures should include the future minimum rental payments as of the date of the latest balance sheet presented, in the aggregate and for a certain number of succeeding fiscal years. What is the requirednumber of years?

a.

10

b.

8

c.

7

d.

5

74.The lessee should report capital lease obligations on the balance sheet as

a.

a current liability.

b.

a long-term liability.

c.

a current liability for the current portion and a long-term liability for the remaining amount.

d.

a note to the financial statements only.

75.Which of the following is a required disclosure by a lessee for both capital leases and operating lease?

a.

rental expense for each period

b.

lease assets, accumulated amortization, amortization expense, and liabilities

c.

amount of imputed interest required to reduce the net minimum payments to present value

d.

dividend and debt restrictions imposed by lease agreements

76.When is it appropriate for the lessee to use the lessor's implicit rate to discount the minimum lease payments?

a.

whenever the lessee knows what the lessor's rate is

b.

when the lessor's rate is higher than the lessee's incremental borrowing rate

c.

when the lessee's incremental borrowing rate is lower than the lessor's rate

d.

when the lessor's implicit rate is lower than the lessee's incremental borrowing rate

77.On January 1, 2016, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $15,000 beginning December 31, 2016. The lease is considered to be a sales-type lease. When reading the Stacie income statement, you would expect to find which of the following accounts?

a.

Rent Revenue

b.

Interest Revenue

c.

Rental Expense

d.

Interest Expense

78.A lease must be treated as a direct financing lease by the lessor when at least one of the four basic criteria is met, collectability of the minimum lease payments is reasonably assured, no uncertainties surround the amount of the unreimbursable costs, and

a.

the lessor is a financial institution.

b.

the interest revenue element is determined in such a manner as to produce a constant rate of return on the net investment of the lease.

c.

the lessor does not have a dealer profit or loss.

d.

the lease agreement contains a provision for unguaranteed residual value.

79.For a sales-type lease, cost of asset leased is valued by the lessor at

a.

the recorded cost assigned to the inventory less the present value of the guaranteed residual value of the leased property accruing to the benefit of the lessor.

b.

the recorded cost assigned to the inventory less the undiscounted value of the unguaranteed residual value of the leased property accruing to the benefit of the lessor.

c.

the recorded cost assigned to the inventory less the present value of the unguaranteed residual value of the leased property accruing to the benefit of the lessor.

d.

the recorded cost assigned to the inventory less the undiscounted value of the guaranteed residual value of the leased property accruing to the benefit of the lessor.

80.Depreciation expense will be recorded in the accounts of the

a.

lessee for operating leases.

b.

lessor for operating leases.

c.

lessor for direct financing leases.

d.

lessor for sales-type leases.

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