The estimated residual value of a depreciable leased asset at the end of the lease term is:

Question 11 options:

	added to the bargain purchase option at the expiration of the lease.
	always guaranteed by either the lessor or the lessee.
	an important factor in how the lessor and lessee must account for the lease.
	used by the lessor to compute the annual amount of depreciation expense.

Question 12 (1 point)

A lease that is less than 12 months in duration may be classified as long-term if there are substantial penalties for non-renewal.

Question 12 options:

	True
	False

Question 13 (1 point)

Which of the following is not included in the initial measurement of a lease liability?

Question 13 options:

Variable lease payments that change with an index or rate.

Variable lease payments based on usage.

Payments of penalties to terminate the lease.

Expected amounts to be paid under the contract for residual values.

question 16 Costs related to a new pension plan that are necessary to "catch up" for services rendered prior to the inception of the pension plan are classified as:

Question 16 options:

	actuarial losses.
	past service costs.
	retroactive deferred charge.
	service costs.

question 19The lease term includes any periods covered by an extension option if it is reasonably certain that the extension option will be exercised.

Question 19 options:

	True
	False

Question 20 (1 point)

Factors affecting estimates of benefits under a post-retirement health care plan include all of the following except:

Question 20 options:

	health care cost trend rates.
	discount rate.
	per capita claims cost by age.
	plan demographics.