ACCT 013

ACCT 013 Leases - We Have More Questions

Multiple Choice

1.    If you determine leases are immaterial and not being recorded in the current year, which of the following is true:

• a.    You do not need to consider ever recording leases

• b.    You do not need to consider passed adjustments in audits/reviews

• c.    You must reevaluate materiality and passed adjustments each year

Multiple Choice

2.    Which of the following is true related to lessor accounting:

• a.    Net investment in operating lease receivables should be recorded

• b.    Operating leases do NOT DErecognize the PP&E asset

• c.    Sales-type leases do NOT DErecognize the PP&E asset

Multiple Choice

3.    Which of the following is correct as it relates to consolidating financial statements and leases?

• a.    The elimination entry will balance, regardless of how the lessor recorded the lease

• b.    The elimination entry will not balance unless a receivable was on the lessor’s books

• c.    There should not be an elimination entry

Multiple Choice

4.    What is the easiest way to get the lease disclosures as a lessee?

• a.    Use Lessee Ledger to calculate leases, and disclosures

• b.    Use TValue and summarize the information

• c.    Create your own method

Multiple Choice

5.    What should you do with capital leases in Fixed Assets Solutions?

• a.    Change existing to memo if we do a PPT

• b.    Delete them all

• c.    Nothing for existing ones; do not add new ones