Question : 121. Firms account for leases using either the operating lease method : 1230454

121. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true? A. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessor borrows funds from the lessee to purchase the asset and the lessee recognizes profit at the time of sale.B. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. C. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. D. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.E. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.

122. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms can currently apply the fair value option to capital leases

123. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more specific criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases

124. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.C. When the lessee enjoys the benefits and bears the risk, the lease is an operating lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases

125. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is a capital lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases

126. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is true? A. Firms cannot currently apply the fair value option to capital leases. B. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. all of the above

127. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. Under the capital, or finance, lease method, the lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable. B. Under the capital, or finance, lease method, the lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.C. Under the capital, or finance, lease method, the lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.D. Under the capital, or finance, lease method, the lessor records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. E. The capital, or finance, lease method, treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.

128. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. Under the capital, or finance, lease method, the lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable. B. Under the capital, or finance, lease method, the lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.C. Under the capital, or finance, lease method, the lessor amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.D. Under the capital, or finance, lease method, the lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. E. The capital, or finance, lease method, treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.

129. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. Under the capital, or finance, lease method, the lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable. B. Under the capital, or finance, lease method, the lessor recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.C. Under the capital, or finance, lease method, the lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.D. Under method, the lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. E. The capital, or finance, lease method, treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.

130. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. Under the capital, or finance, lease method, the lessee records the signing of a capital lease the same as if the lessee sold the leased asset for an installment note receivable. B. Under the capital, or finance, lease method, the lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.C. Under the capital, or finance, lease method, the lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.D. Under the capital, or finance, lease method, the lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. E. The capital, or finance, lease method, treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.