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Unformatted text preview: Name _________________________ SSN ___________________________ AMIS 522 - WINTER 2006 - EXAM 2 - WEDNESDAY, FEBRUARY 22, 2006 Instructions - READ CAREFULLY! 1. The Exam consists of _____ pages including the cover sheet. Be sure that you have a complete exam before beginning. If not, raise your hand, and I will give you another copy. Factor tables are provided for your use. 2. From the time that I start the exam, you will have 108 minutes to complete it. You are responsible for tracking your own time. 3. Print your name and social security number on this page of the exam only. 4. Questions are permitted during the Exam. I may chose to answer or not answer your question. If the question clarifies some information in the Exam, I will announce it to the class. 5. All pages of the exam must be returned with the exam. Those with missing pages will receive no credit for the Exam. 6. If you are still in the room when I call time, stop writing immediately and place your writing instrument on the desk. Failure to do so will cost you 25 points. 7. If you finish early, check your work to avoid careless errors. If you wish to leave early, place your Exam in the box on my desk and leave quietly in consideration of those remaining. Please do not let the door slam when you leave. 8. Any instances of cheating or copying from neighbors will result in a grade of 0 for the exam. 9. Grades will be available in WebCT on Monday as well as the Case. Good luck! 10. 275 points will be assigned to the Exam. 2. GAAP requires that some lease agreements be accounted for as purchases. The theoretical justification for this treatment is that a lease of this type: A) Complies with the concept of form over substance. B) Reflects the relationship of cause and effect. C) Satisfies the concept of historical cost. D) Conveys most of the risks and benefits of property ownership. Page 1 3. Which of the following statements characterizes an operating lease? A) The lessee records depreciation and interest. B) The lessor records depreciation and lease revenue. C) The lessor transfers title at the end of the lease term. D) The lessee records a leased asset. 4. The lessee's option to purchase a leased asset at a price that is sufficiently lower than the asset's expected fair value so that the exercise of the option appears reasonably assured is called a: A) Bargain purchase option....
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- Winter '09