tbch15 - CHAPTER 15 Leases MULTIPLE CHOICE QUESTIONS...

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C HAPTER 15 Leases M ULTIPLE C HOICE Q UESTIONS Theory/Definitional Questions 1 GAAP basis for recognizing some leases as purchases 2 Characteristics of an operating lease 3 Present value criteria for capital lease 4 Accounting for rental payments under operating leases 5 Capital versus operating lease--use of present value 6 Lease term criteria for capital lease 7 Capital lease--recording initial liability of lessee 8 Depreciation term for leased machine 9 Reduction of liability on lessee's books 10 Three types of period costs associated with lessee and capital lease 11 Effect of minimum lease payments on net liability 12 Treatment of guaranteed residual values by lessee 13 Amortization of capital lease asset 14 Items included in minimum lease payments 15 Treatment of bargain purchase option 16 Characteristics of sales-type lease 17 Treatment of initial direct costs by lessor 18 Treatment by lessee of equal monthly rental payments 19 Classification of leases--capital or operating 20 Treatment of gain on rental 21 Capitalization and amortization of building and land 22 Accounting for residual values by lessor 23 Treatment of lease with no bargain purchase option 24 Nature of executory costs 25 Guaranteed residual values 26 Definition of lease term 27 Composition of minimum lease payment 28 Lease disclosure requirements 29 Lease disclosure requirements 30 International accounting standards for leases 31 Lessee treatment of leases involving real estate 32 Real estate lease--fair market value of land greater than 25 % of total fair value 33 Real estate lease--fair market value of land less than 25% of total fair value 59
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60 Chapter 15 Leases 34 Sale-leaseback transactions Computational Questions * 35 Computation of total present value and first year interest expense for lease 36 Computation of lease liability on noncancelable lease 37 Computation of interest revenue of lease 38 Computation of lease liability with discounted lease payments 39 Computation of profit and interest income amounts 40 Computation of interest expense on noncancelable lease 41 Computation of capital lease liability amount 42 Computation of income from leased equipment 43 Computation of present value amount to classify asset as capital lease 44 Computation of deferred revenue from leaseback 45 Computation of booked amount for equipment lease 46 Computation of net rental income on lease 47 Computation of interest expense for capital lease 48 Computation of income on lease transactions 49 Computation of amortization expense 50 Computation of amount of rent expense on lease 51 Computation of total capital lease liability 52 Classification of leases under international accounting standards * This question requires the use of present value tables to solve . P
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tbch15 - CHAPTER 15 Leases MULTIPLE CHOICE QUESTIONS...

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