Question
Can you please solve the three MCQ questions : 1) When accounting for operating lease under ASC 840, which of the following accounts are charged
Can you please solve the three MCQ questions :
1) When accounting for operating lease under ASC 840, which of the following accounts are charged with the expense of the lesse's income statement ?
a) Rent expense
b)Ammortization expense
c)Depreciation expense
d) Operating expense
2)Executory costs of a lease are treated by the lease as :
a) Capitalized cost of the lease
b)additional interest expense
c)operating expenses
d) Deferred expense
3) when accounting for a capital lease under ASC 840 , depreciation expense is equal to :
a) lease payments
b) principal portions of lease payments
c)Normal depreciation computed on the depreciable base of the asset.
d)Straight line depreciation on the full amount of leased asset
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