Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Which of the following is an advantage of leasing over the purchase of property for use by a business? a. Balance sheet financing. b.

1. Which of the following is an advantage of leasing over the purchase of property for use by a business?

a. Balance sheet financing.

b. It offers protection against fraud.

c. It can be less costly than other forms of financing.

d. Determining whether the lease is a sales-type lease or a direct financing lease.

2. The FASBs new accounting standard for leases is

a. ASU 2016-02

b. ASU 2016-03

c. ASU 2016-04

d. ASU 2016-05

3. ASU 2016-02 defines a lease as

a. A useful or valuable thing, person or quality

b. a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration

c. a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law

d. a companys legal financial debts or obligations

4. Lessors are only required to recognize lease assets and liabilities for leases with terms of more than _____ months.

a. 3

b. 6

c. 12

d. 18

5. The new leasing standard will affect a significant number of entities across industries because:

a. Most companies enter into contracts that are or contain leases to support their business operations.

b. Everyone uses off-balance-sheet financing.

c. Bright line tests no longer exist in U.S. GAAP

d. All companies use leases when recognizing assets

6. The new leasing standard excludes

a. Leases of intangible assets

b. Leases of inventory

c. Both of these

d. Neither of these

7. Each of the following is an implementation challenge faced by entities using the new leasing standard except:

a. Applying judgment and making estimates

b. Managing the complexities of data collection, storage and maintenance

c. Refining internal controls and other business processes

d. Materiality concerns

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Auditing Standards In The United States Comparing And Understanding Standards For ISA And PCAOB

Authors: Asokan Anandarajan, Gary Kleinman

2nd Edition

1953349323, 9781953349323

More Books

Students also viewed these Accounting questions

Question

=+a) What is the population?

Answered: 1 week ago

Question

Identify the federal laws affecting equal employment opportunity.

Answered: 1 week ago

Question

Identify the elements of the dynamic HRM environment.

Answered: 1 week ago

Question

Discuss attempts at legislating ethics.

Answered: 1 week ago