No Yes Yes Yes No 13). For a finance lease, an amount equal to the present value

Question

No Yes Yes Yes No 13). For a finance lease, an amount equal to the present value of the minimum lease payments should be recorded by the lessee as a(n): A. Asset and a liability B. Asset and a different amount should be recorded as a liability. C. Liability and a different amount should be recorded as an asset. D. Expense. 14). The five criteria provided in GAAP for distinguishing a capital lease from an operating Capta lease do not include: A. The agreement specifies that ownership transfers at the end of the lease term. B. The present value of lease payments equals or exceeds "substantially all fair" value of asset D. The noncancelable lease term is 75% or more of the useful life of the leased asset. 15) In computing the annual lease payments, the lessor deducts only a guaranteed residual 16). In the operating lease, interest expense and amortization expense are shown separately on 17) Both a guaranteed and an unguaranteed residual value affect the lessee's computation of 18). Operating lease liability is reported in balance sheet of lessee as a "non-debt liability". value from the fair market value of a leased asset. TRUE FALSE TRUE FALSE the income statement for good reporting purposes FALSE amounts capitalized as a leased asset. TRUE TRUE FALSE Property tax is added as part of lease payment instead of as an expense. TRUE A capitalized leased asset is always depreciated over the term of the lease by the lessee FALSE 19). 20). TRUE FALSE of taxable temporary differences existing at the end of the current year. TRUE FALSE 21) A deferred tax liability represents the increase in taxes payable in future years as a result

Explanation / Answer

13) in finance lease lessee records present value of minimum lease payments should record as a asset as well as libility

14) gaap does not include purchase option in agreement

15) in computing annual lease payments lessor should be deduct onlu gaurenteed resedual value. it is true

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