Question : 151. U.S. GAAP and IFRS provide criteria for distinguishing operating leases : 1245820

151. 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

152. 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.

153. 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

154. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true? 
A. U.S. GAAP provides four criteria, any one of which qualifies a lease as a capital lease.
B. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.
C. Firms can currently apply the fair value option to capital leases.
D. The FASB and the IASB have undertaken a joint project involving the lessee’s accounting for leases which may result in treating all leases as capital leases.
E. all of the above

155. 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.

156. 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.

157. 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.

158. The financial reporting standards for property, plant, and equipment are similar under U.S. GAAP and IFRS except for 
A. upward remeasurements for fair value increases, only.
B. recognition and measurement of asset impairment losses, only.
C. upward remeasurements for fair value increases and recognition and measurement of asset impairment losses.
D. downward remeasurements for fair value decreases, only.
E. downward remeasurements for fair value decreases and recognition and measurement of asset impairment losses.

159. U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions.  Which of the following is/are not true? 
A. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits.
B. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits.
C. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.
D. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method.
E. all of the above

160. U.S. GAAP and IFRS require firms to treat some or all expenditures made to internally develop brand names, customer lists, new technologies, and other intangibles  
A. at fair value.
B. as expenses in the period of the expenditure.
C. as capitalized assets without amortization because of infinite lives.
D. as capitalized assets with amortization over the finite lives.
E. as capitalized assets tested annually for impairment.