Question 1

Which of the following is an appropriate journal entry for the initial recognition by a financier lessor of a finance lease arrangement?

Accepted Answer

A)  DR Leased asset: CR Cash 
B)  DR Lease receivable: CR Asset 
C)  DR Lease receivable: CR Lease liability 
D)  DR Leased asset: CR Cash/accounts payable 
A)  DR Leased asset: CR Cash 
B)  DR Lease receivable: CR Asset 
C)  DR Lease receivable: CR Lease liability 
D)  DR Leased asset: CR Cash/accounts payable

Question 2

When negotiating operating leases, any initial direct costs incurred by lessors are to be:

Accepted Answer

A)  recognised as an expense over the lease term. 
B)  initially capitalised into a separate deferred costs account. 
C)  added to the carrying amount of the underlying asset. 
D)  all of the above. 
A)  recognised as an expense over the lease term. 
B)  initially capitalised into a separate deferred costs account. 
C)  added to the carrying amount of the underlying asset. 
D)  all of the above.

Question 3

The rewards of ownership of an asset include the possibilities of gains related to:
I. Realisation of a residual value.
II. Benefits obtained from profitable operation over the underlying asset's economic life.
III. Appreciation in the asset's value.

Accepted Answer

A)  I only. 
B)  I and II only. 
C)  I, II and III. 
D)  III only. 
A)  I only. 
B)  I and II only. 
C)  I, II and III. 
D)  III only.

Question 4

At the inception date of the lease, the fair value of the asset measures:

Accepted Answer

A)  the present value of the total benefits remaining with the lessor. 
B)  the present value of the total benefits associated with the asset. 
C)  the total of the lease payments over the term of the lease. 
D)  none of these options. 
A)  the present value of the total benefits remaining with the lessor. 
B)  the present value of the total benefits associated with the asset. 
C)  the total of the lease payments over the term of the lease. 
D)  none of these options.

Question 5

Which of the following is an appropriate journal entry for the initial recognition by a manufacturer/dealer lessor?

Accepted Answer

A)  DR Leased asset: CR Cash 
B)  DR Cash: CR Sales revenue 
C)  DR Lease liability: CR Leased asset 
D)  DR Leased receivable: CR Sales revenue 
A)  DR Leased asset: CR Cash 
B)  DR Cash: CR Sales revenue 
C)  DR Lease liability: CR Leased asset 
D)  DR Leased receivable: CR Sales revenue

Which of the following is an appropriate journal entry for the initial recognition by a financier lessor of a finance lease arrangement?

When negotiating operating leases, any initial direct costs incurred by lessors are to be:

The rewards of ownership of an asset include the possibilities of gains related to: I. Realisation of a residual value. II. Benefits obtained from profitable operation over the underlying asset's economic life. III. Appreciation in the asset's value.

At the inception date of the lease, the fair value of the asset measures:

Which of the following is an appropriate journal entry for the initial recognition by a manufacturer/dealer lessor?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters

Exam 10: Leases

Which of the following is an appropriate journal entry for the initial recognition by a financier lessor of a finance lease arrangement?

When negotiating operating leases, any initial direct costs incurred by lessors are to be:

The rewards of ownership of an asset include the possibilities of gains related to: I. Realisation of a residual value. II. Benefits obtained from profitable operation over the underlying asset's economic life. III. Appreciation in the asset's value.

At the inception date of the lease, the fair value of the asset measures:

Which of the following is an appropriate journal entry for the initial recognition by a manufacturer/dealer lessor?

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters