1Which of the following statements is correct regarding the accounting for leases?*

An entity can never be both a lessor and a lessee of a same leased asset

When discounting lease payments the lessor and the lessee use the interest rate implicit in the lease

The lessee depreciates the leased asset under a "short-term" or a "low-valued asset" lease.

The lessor depreciates the leased asset under a finance lease

2Statement 1: IFRS uses the term "contingent" for assets and liabilities not recognized in the financial statements. Statement 2: Contingent assets are not reported in the statement of financial position. Statement 3: Contingent liabilities are not reported in the financial statements but may be disclosed in the notes to the financial statements if the likelihood of an unfavorable outcome is possible*

Only 2 statements are true

None of the statements are true

All statements are true

only 1 statement is true

3Security deposits that are refundable*

are discounted only by lessees but not by lessors

are not discounted because they are normally of a short-term nature

are treated as receivable by lessees and as payable by lessors.

are treated as unearned income by lessors under an operating lease.

4If the lessor recognizes rent income (lease income), then the lease must have been classified as

none of these

finance lease

a or b

operating lease

5 A discount on notes payable is charged to interest expense

only in the year the note matures

equally over the life of the note.

only in the year the note is issued.

using the effective-interest method

6 Statement 1: Note payable can be reclassified from current to non current if the entity has the intent and ability to reclassify the note before the issuance of the financial statement Statement 2: Note payable can be reclassified from current to non current If the entity has executed an agreement to refinance the note before the issuance of the financial statements. Statement 3: Note payable can be reclassified from current to non current If the entity has the intent and ability to reclassify the note before the end of reporting period.

Only 2 statements are true

All statements are true

None of the statements are true

only 1 statement is true