Question :
111. U.S. GAAP and IFRS require firms to disclose the fair : 1230453
111. U.S. GAAP and IFRS require firms to disclose the fair value of long-term notes and bonds in notes to the financial statements. Fair value is A. the amount the firm would pay to settle the debt on the date of the balance sheet.B. the current market price in the case of items that trade in active markets.C. the present value of the contractual cash flows discounted at a current market interest rate that reflects all the factors that market participants would consider, including the item’s credit risk.D. all of the aboveE. none of the above
112. Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is true? A. The operating lease method treats leases as executory contracts. B. The operating lease method recognizes a leased asset on the lessee’s statement of cash flows.C. The operating lease method recognizes a lease liability on the lessee’s balance sheet. D. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time.E. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.
113. 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 operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessor’s balance sheet. D. Under the operating lease method, the lessor recognizes rent revenue as the lessee uses the leased asset over timeE. Under the operating lease method, the lessee does not recognize rent expense as the lessee uses the leased asset over time.
114. 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 operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessee’s balance sheet. D. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over timeE. Under the operating lease method, the lessee recognizes rent expense as the lessee uses the leased asset over time.
115. 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 operating lease method treats leases as executory contracts. B. The operating lease method does not recognize a leased asset on the lessee’s balance sheet. C. The operating lease method recognizes a lease liability on the lessee’s balance sheet. D. The lessor recognizes rent revenue as the lessee uses the leased asset over timeE. The lessee recognizes rent expense as the lessee uses the leased asset over time.
116. 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 operating lease method treats leases as executory contracts. B. The operating lease method recognizes a leased asset on the lessee’s balance sheet. C. The operating lease method does not recognize a lease liability on the lessee’s balance sheet. D. The lessor recognizes rent revenue as the lessee uses the leased asset over timeE. The lessee recognizes rent expense as the lessee uses the leased asset over time.
117. 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 lessee borrows funds from the lessor to purchase the asset and the lessor 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 differently than if the lessor sold the leased asset for an installment note receivable.
118. 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 lessee borrows funds from the lessor to purchase the asset and the lessor 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 lessor 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.
119. 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 lessee borrows funds from the lessor to purchase the asset and the lessor 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 lessor 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.
120. 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 lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.B. 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. 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.
