Accounting intermediate II practice questions:

38. Disclosure requirements for lease by lessee include: a. General Information about the lease b. A description of any residual value c. Restrictions imposed by the lease agreement d. All of the above e. None of the above. 39.T/F. A short-term lease may not be capitalized in the books of the lessee . 40. T/F. For a Finance lease, a lessee will recognize Right-of-Use of Asset and Lease Liability. Subsequently, the lessee will recognize interest expense on the lease using the straight line method. 41. T/F. For a finance lease, the lessee reports its interest expense and amortization expense in its income statement