AC 311 chapter 15 kahoot
interest expense for a finance lease is expected to ___ each year
decrease
interest expense for an operating lease is expected to ___ each year
decrease
the lessee measures the ROU asset for a finance lease to be recorded as the
PV of the lease payments
the lessee measures the ROU asset for an operating lease to be recorded as the
PV of the lease payments
the lessee measures the lease liability for a finance lease to be recorded as the
PV of the lease payments
the lessee measures the lease liability for an operating lease to be recorded as the
PV of the lease payments
the lessee is an operating lease should record: - interest expense -amoritization expense - a ROU asset - all of the above
all of the above
for the lessee to account for the lease as finance, the lease must meet
any of the 5 criteria created by GAAP
T/F a bargain purchase option is an option to purchase the leased asset at a price equal to its expected fair value
false
T/F total lease expense (interest and amortization) for a finance lease will be the same amount each year
false
amortization expense for the ROU asset in an operating lease is expected to ___ each year
increase
with the exception of the first lease payment, each lease payment typically has a component of:
interest expense and lease payable reduction
amortization expense for the ROU asset in a finance lease is expected to ___ each year
remain the same
in connection with a lease greater than 12 months long, the lessee will always record each of the following except: an asset, expense, a liability, revenue
revenue
distinguishing between finance and operating leases due in large part to the accounting concept of
substance over form
which of the following is NOT a criteria for classifying a lease as Finance: - the leased asset has an alternate use to lessor at the end of the lease - the lease contains a bargain purchase option - the lease term is >75% of the remaining life of the asset - the PV of the lease payments is >90% of fair value of leased asset
the leased asset has an alternate use to lessor at the end of the lease
a leasehold improvement should be depreciated on a straight-line basis over
the shorter of the lease term or useful life of the improvement
T/F all other factors remaining equal, the amount of interest expense recorded for a finance lease is the same for operating
true
T/F all other factors remaining equal, the annual lease payable reduction for a finance lease is the same for operating
true
T/F total lease expense (interest and amortization) for an operating lease will be the same amount each year
true