ACCT 326 ch15 flashcard 2

Front

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

Back

Present value of the lease payments.

Front

Damon is the lessee in connection with a finance lease. Damon will not record:

Back

Depreciation expense.

Front

Since the lease payments under a lease agreement are normally paid at the beginning of each period, the appropriate compound interest table to be used to determine the amount at which the right-of-use asset should be recorded is the:

Back

Present value of an annuity due table.

Front

In an operating lease, the:

Back

lessee records an asset and a liability for the present value of lease payments.

Front

If the lessor records deferred lease revenue at the beginning of a lease term, the lease must:

Back

Be an operating lease.

Front

Which of the following statements characterizes an operating lease?

The lessee records depreciation and lease revenue.

The lessor records depreciation and lease revenue.

The lessor transfers title at the end of the lease term.

The lessee has an option to purchase the leased assets and is reasonably sure to exercise the option.

Back

The lessor records depreciation and lease revenue.

Front

In an operating lease, the amortization of the right-of-use asset in the third year is:

Back

less than in the fourth year.