1.

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor

Select one:

a.

b.

c.

d.

e.

2.

A 12-year finance lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment in year 10 applicable to lease liability should be:

Select one:

a.

Less than in year 8

b.

The same as in year 8

c.

Less than in year 12

d.

More than in year 12

3.

Following is the general format of a four-column bank reconciliation with the various categories and presentation of reconciling items numbered (1) through (8): Indicate the proper presentation of a 10/31 outstanding check.

Select one:

a.1 and 5

b.2 and 3

c.2 and 6

d.6 and 7

e.1 and 6

Aleate qualifies as a finance les type lease Indicate an account to be used by the lessee, and an account to be used by the lessor Select one Account to be used by the loss. Right of Use Asset Account to be used by the lessor Lease Recelvable Account to be used by the assor Sales Revenue Account to be used by the lossee Unearned Revenue OC Account to bo used by the loss Lease Expense O Account to be used by the lessee Lease Liability Account to be used by the lossee Amortization Expense Account to be used by the lessor Interest Revenue Account to be used by the lessor Amortization Expense Apoint to be used by the losser Interest Expense A 12 year finance lease specifies equal minimum and payments. Part of this payment represents interest and part represents a reduction in the neteate ability. The portion of the minimum Jease payment in year 10 applicable to lease liability should be Select one Less than in years O The same as in year O Less than in year 12 O d. More than in year 12 Following in the general format of a four-column bank reconciliation with the various categories and presentation of reconciling items numbered (1) through Balance 1001 Draw bodox 1000 x + Awr Bank Stan Home to be Home to be deducted A Books DODOX LOOK 5000 Indicate the proper presentation of a 10/31 outstanding check Select one: a 1 and 5 Ob 2 and 3 O cand Od. 6 and 7 Oland A convertible bond should be included in the diluted earnings per share computation as if the bonds had been converted into common stock if the effect of its inclusion is Select one O tither dutive or Anti-dilutive O Dilutive but not Anti-dilutive O Anti-cutive but not Dilutive