1. Executory costs include

a) maintenance, interest and property taxes.

b) interest, property taxes and depreciation.

c) insurance, maintenance and property taxes.

d) maintenance, insurance and income taxes.

2. Which of the following is a correct statement regarding one of the ASPE capitalization criteria?

a) The lease transfers ownership of the property to the lessor.

b) The lease must contain a bargain purchase option.

c) The lease term is 75% or more of the leased propertys estimated economic life.

d) The fair value of the minimum lease payments is equal to 90% or more of the present value of the leased asset.

3. For a lessee, the minimum lease payments may include

a) the minimum rental payments and a guaranteed residual value only.

b) the minimum rental payments and a bargain purchase option only.

c) a bargain purchase option and a guaranteed residual value.

d) the minimum rental payments, a bargain purchase option, and a guaranteed residual value.

4. In calculating the present value of the minimum lease payments, IFRS requires the lessee should

a) use its incremental borrowing rate in all cases.

b) use either its incremental borrowing rate or the interest rate implicit in the lease, whichever is higher.

c) use either its incremental borrowing rate or the interest rate implicit in the lease, whichever is lower.

d) use the interest rate implicit in the lease whenever this is reasonably determinable, otherwise use the lessees incremental borrowing rate.

5. What type of lease is EXCLUDED from being recognized as a finance lease under IFRS 16?

a) short-term leases

b) vehicle leases

c) significant value leases

d) leases including bargain purchase options