Intermediate Accounting exam 2

¡Supera tus tareas y exámenes ahora con Quizwiz!

Which of the following creates a deferred tax liability?

Accelerated depreciation in the tax return and an unrealized gain from recording investments at fair value.

Which of the following would a lessee not record in connection with a lease?

Lease revenue

If a company's deferred tax asset is not reduced by a valuation allowance, the company believes it is:

More likely than not that sufficient taxable income will be generated in future years to realize the full tax benefit.

ABC Books is the lessor in a lease agreement. From the perspective of the lessor, the lease may be classified as:

Operating or sales-type

The lessee normally measures the lease liability to be recorded as the

Present value of the lease payments

Which of the following creates a deferred tax asset?

Rent collected in advance (prepaid expense)

Which of the following would a lessor not record in connection with a lease?

Right-of-use asset.

Which of the following leases would least likely be classified as an operating lease by the lessee?

The agreement permits the lessee to buy the leased asset for one dollar at the end of the lease time.

Which of the following is not a sufficient criterion for a lessee to classify a lease as a finance lease?

The lease term is greater than two-thirds of the economic life of the asset

Which of the following is not sufficient criterion for a lessor to classify a lease as a sales-type lease?

The present value of the lease payments is greater than the carrying value of the leased asset.

Like other assets, the cost of a leasehold improvement is allocated as depreciation expense over its useful life to the lessee, which will be:

The shorter of the physical life of the asset or the lease term.

Temporary differences arise when?

There is a difference in timing between when expenses are deductible on the income statement and recognized on the income statement.

Using straight-line depreciation for financial reporting purposes and MACRS for tax purposes in the first year of an asset's life creates a:

deferred tax liability


Conjuntos de estudio relacionados

Introduction to Health Assessment Test

View Set

Quest 6: Coagulation and Hemostasis

View Set

Parallel Lines & Transversal Theorems

View Set

Human Growth and Development test #1

View Set

CareerSafe - EMERGENCY ACTION PLANS AND FIRE PROTECTION

View Set

Chapter 4: Learning & Transfer or Training

View Set

CITI Social and Behavioral Research- Basic/Refresher

View Set