ACC 302 Ch 15 NO

ACC 302 Ch 15 NO - ACC 302 Quiz Chapter 15 Multiple Choice...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 302 Quiz Chapter 15 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. 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 a. effectively conveys all of the benefits and risks incident to the ownership of property. b. is an example of form over substance. c. provides the use of the leased asset to the lessee for a limited period of time. d. must be recorded in accordance with the concept of cause and effect. ____ 2. For a capital lease, the amount recorded initially by the lessee as a liability should a. exceed the present value at the beginning of the lease term of minimum lease payments during the lease term. b. exceed the total of the minimum lease payments during the lease term. c. not exceed the fair value of the leased property at the inception of the lease. d. equal the total of the minimum lease payments during the lease term. ____ 3. The lessee's balance sheet liability for a capital lease would be periodically reduced by the a. minimum lease payment. b. minimum lease payment plus the amortization of the related asset. c.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 06/11/2009.

Page1 / 3

ACC 302 Ch 15 NO - ACC 302 Quiz Chapter 15 Multiple Choice...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online