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26. Advanced receipt of rent by the lessor in a operating lease should be recognized as revenue * (1 Point) On the lease inception date When received On the date of expiry of the lease In the period specified on the contract of lease 27. It is the statistical method of estimating a provision which means that where the provision being measured involves a large population of items, the obligation is estimated by "weighting" all possible outcomes by their associated possibilities. * in hs (1 Point) Simple average Extrapolation O Weighted average O Expected value 28. The right of the use asset shall be reported as (1 Point) Intangible asset since the company does not really owns the property physically Separate line item in the financial statements under Noncurrent Asset Current Asset since it is mostly use by the company in its operation Property, Plant and Equipment with separate line item 29. Under operating lease, the lessor should report the underlying asset in an as which of the following? (1 Point) In accordance with the nature of the asset Current asset As a financial asset On the notes to financial statements only 30. Under which of the following condition would require lease capitalization* (1 Point) The purchase option is not reasonable to be exercised The title of the underlying asset was not transferred to the lessee The term of the lease is significantly shorter in comparison to the useful life of the underlying asset The present value of the lease payments is significantly more than the fair value of the asset