RS: Accounting for Leases

RS: Accounting for Leases

1st Grade

24 Qs

quiz-placeholder

Similar activities

Quiz BCA KCU PIK Part I

Quiz BCA KCU PIK Part I

1st - 3rd Grade

20 Qs

Kuis IKAK

Kuis IKAK

1st - 3rd Grade

20 Qs

BS Pre-test Quiz

BS Pre-test Quiz

1st Grade

20 Qs

POM - Unit 3

POM - Unit 3

KG - University

20 Qs

Management Accounting - Vertical Statement

Management Accounting - Vertical Statement

KG - 5th Grade

20 Qs

Quick Think: Saldo Normal

Quick Think: Saldo Normal

1st Grade

20 Qs

Chapter 4. AP Session

Chapter 4. AP Session

1st - 2nd Grade

25 Qs

Kuis 2 - AKL

Kuis 2 - AKL

1st - 3rd Grade

19 Qs

RS: Accounting for Leases

RS: Accounting for Leases

Assessment

Quiz

Business

1st Grade

Hard

Created by

JOHN SORIANO

Used 4+ times

FREE Resource

24 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a lease provides for the transfer of ownership over the leased asset or a purchase option that is reasonably certain as to exercise
a. the lessor shall depreciate the leased asset over its useful life
b. the lessee shall depreciate the leased asset over the shorter of the asset's useful life and the remaining lease term
c. the lessee shall depreciate the leased asset over its useful life
d. both the lessee and the lessor shall depreciate the leased asset

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following will not be included in the net investment of the lessor?
a. Lease payments
b. Unguaranteed residual value
c. Initial direct cost incurred by a manufacturer or a dealer
d. Initial direct cost except for cost incurred by a manufacturer or a dealer

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A lessor recognizes interest (finance) income on a finance lease in
a. A decreasing manner
b. An increasing manner
c. Equal amounts each period
d. Any of these

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The basic accounting issue for a lessor is
a. Revenue recognition during the lease term
b. Computing depreciation over the lease term
c. Expense recognition during the lease term
d. Determination of the cost of the leased asset

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which statement is correct regarding the lease capitalization criteria?
a. The lease transfers ownership of the underlying asset to the lessor
b. The lease contains a purchase option
c. The lease term is equal to at least 75% of the economic life of the underlying asset
d. The lease payments are at least 90% of the fair value of the underlying asset

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

I. Lessors should recognize asset held under a finance lease in a statement of financial position as a receivable at an amount equal to the gross investment in the lease. II. If right-of-use assets relate to a class of PPE to which the lessee applies the revaluation model in PAS 16, the lessee shall also apply the revaluation model to all of the right-of-use assets that relate to that class of PPE.
a. Both statements are correct
b. Both statements are incorrect
c. Only I statement is correct
d. Only II statement is correct

7.

MULTIPLE CHOICE QUESTION

1 min • 3 pts

On January 10, Kabahan Ka Na Company leased a truck for a four-year period, which will be returned to the lessor. Annual lease payments every end of the year is amounting to P230,000, with a 5% discount rate. If Kabahan Ka Na Company's revenue exceed a specified amount during the lease term, Kabahan Ka Na will pay an additional 20,000 lease payment at the end of the lease. Kabahan Ka Na estimates a 60% probability of meeting the target revenue amount. What amount, if any, should be added to the right-of-use asset and lease payable under the contingent rent agreement?
a. An additional 10,000 should be added
b. No additional amount should be added
c. An additional 20,000 should be added
d. An additional 12,000 should be added

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?