Govt Acctg- Leases and FS

A lessor's unearned interest income in a finance lease is computed as

• minimum lease payments plus unguaranteed residual value

• present value of (a)

• difference between (a) and (b)

• sum of (a) and (b)

According to the GAM for NGAs, government entities shall present expenses in the statement of financial performance according to the

• function of those expenses

• nature of those expenses

• a or b, as a matter of accounting policy choice

• neither a nor b

A government entity presents payments for purchases of items of PPE in the statement of cash flows

• under financing activities

• net of withholding taxes

• gross of withholding taxes

• as footnote disclosure only

Initial direct costs incurred on leases are

• expensed immediately

• capitalized

• generally expensed immediately except those incurred by lessors under sales type leases which are capitalized

• generally capitalized except those incurred by lessors under sales type leases which are expensed immediately

A lessor's net investment in a finance lease is computed as

• minimum lease payments plus unguaranteed residual value

• present value of (a)

• difference between (a) and (b)

• sum of (a) and (b)

A lessor's gross investment in a finance lease is computed as

• minimum lease payments plus unguaranteed residual value

• present value of (a)

• difference between (a) and (b)

• sum of (a) and (b)

When an entity presents expenses in the statement of financial performance by function, it shall provide additional disclosures in the notes that include all of the following except

• capital outlays

• depreciation expense

• amortization expense

• employee benefits expense

Minimum lease payments (MLP) exclude which of the following?

• Rentals

• Bargain purchase option

• Executory costs and contingent rents

• Guaranteed residual value

A lessee under a finance lease recognizes the leased asset and the corresponding finance lease liability at the

• Fair value of leased property

• Present value of minimum lease payments

• lower of a and b

• higher of a and b

The GAM for NGAs requires all of the following information to be displayed prominently and repeatedly on the face of the financial statements, except

• Name of the related Registries used

• The reporting currency

• The level of rounding-off of amounts

• Name of fund cluster