Which one of the following is not considered criteria to capitalize a lease? A.

Question

Which one of the following is not considered criteria to capitalize a lease? A. The lease contains a purchase option. B. The least transfers ownership at the end of the lease term. C. The least term is more than 75% of economic life of the property. D. The present value of minimum lease payments is less than 90% of the fair market value of the asset. E. All of the above. 16. The classification of current assets and current liabilities is important for A. Liquidity B. Working capital C. A and B D. None of the above 17. The amortisation of a bond premium: A. Decreases the carrying value of a bond and increases interest expense. B. Decreases the carrying value of a bond and decreases interest expense. C. Increases the carrying value of a bond and increases interest expense D. Increases the carrying value of a bond and decreases interest expense 18. Discount on bonds payable is best described as: A. An element of future interest expense. B. A bonus paid by the bondholders to th

Explanation / Answer

Part III

A) Current Liability Match D

B) Contigent Liability Match A

C) Working Capital Match E

D) Liquidity Match B

E) Liabilities Match C

  

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