Question 1

In accounting for operating leases,the lessor,rather than the lessee,will recognize depreciation on the leased asset.

Accepted Answer

A) True 
 B)False

Question 2

For the lessor to account for a lease as a capital lease,the lease must meet:

Accepted Answer

A) Any one of first four classification criteria and both of the last two additional conditions specified by GAAP regarding accounting for leases. 
B) Any one of the six criteria specified by GAAP regarding accounting for leases. 
C) All four of the criteria specified by GAAP regarding accounting for leases. 
D) Any one of the four criteria specified by GAAP regarding accounting for leases. 
A) Any one of first four classification criteria and both of the last two additional conditions specified by GAAP regarding accounting for leases. 
B) Any one of the six criteria specified by GAAP regarding accounting for leases. 
C) All four of the criteria specified by GAAP regarding accounting for leases. 
D) Any one of the four criteria specified by GAAP regarding accounting for leases.

Question 3

Red Co.recorded a right-of-use asset of $100,000 in a 10-year Type A lease.Payments of $16,275 are made annually at the end of each year.The interest rate charged by the lessor was 10%.Under the new ASU,the balance in the lease payable after two years will be:

Accepted Answer

A) $ 80,000. 
B) $ 86,823. 
C) $116,309. 
D) $121,000. 
A) $ 80,000. 
B) $ 86,823. 
C) $116,309. 
D) $121,000.

In accounting for operating leases,the lessor,rather than the lessee,will recognize depreciation on the leased asset.

For the lessor to account for a lease as a capital lease,the lease must meet:

Red Co.recorded a right-of-use asset of $100,000 in a 10-year Type A lease.Payments of $16,275 are made annually at the end of each year.The interest rate charged by the lessor was 10%.Under the new ASU,the balance in the lease payable after two years will be:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 15: Leases

In accounting for operating leases,the lessor,rather than the lessee,will recognize depreciation on the leased asset.

For the lessor to account for a lease as a capital lease,the lease must meet:

Red Co.recorded a right-of-use asset of $100,000 in a 10-year Type A lease.Payments of $16,275 are made annually at the end of each year.The interest rate charged by the lessor was 10%.Under the new ASU,the balance in the lease payable after two years will be:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters