Can u help me Variable lease payments based on an indexare?a) Excluded from lease liabilityb) Included using initial indexc) Recognized as expense when incurredd) Added to equity

Explanation of Variable Lease Payments: Variable lease payments are amounts that vary based on…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Under a capital lease: Select one: a. The lessee report assets on balance sheet O b. None of the options c. The lessee report rent expenses on income statement d. The lessor report rent expense on income statement
An amount paid by the lessee to the lessor in addition to the periodic rental which is treated by the lessor as an unearned rent income to be amortized over the lease term. a. Contingent rent b. Lease bonus c. Initial direct cost d. Security deposit
The difference of gross investment in the lease and net investment in the lease of the lessor is? A. Total amount of interest that the lessee shall recognized as interest expense over the lease term. B. Interest income at inception of the lease. C. Total amount of interest that the lessor shall recognized as interest income over the lease term. D. Initial direct cost.
Which of the following accounts would not appear on the income statement of a lessee in connection with a finance lease? 0 A. Amortization expense B. Interest expense OC. Services expense for a nonlease component D. Rental expense
When a lease qualifies as a finance lease, what amount is initially recorded as the cost of the right-of-use asset? A) The present value of the lease payments B) The sum of the gross (undiscounted) lease payments. O A O B « Previous Next Not saved Submit Quiz
Which of the following is not included in the lease payments for the purpose of computing the lease liability? A. Fixed payments less any lease incentives receivable B. Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date C. Guaranteed residual value D. Contingent rent based on level of sales
When a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue
Lease payments under an operating lease shall be recognized as an expense in the income statement on? a diminishing balance basis cash basis a sum of units basis a straight line basis over the lease term unless another systematic basis provides more reliable financial information
A lease agreement whereby the lessor shall recognized gross profit at inception of the lease? a. Multi-agreement lease b. Direct finance lease c. Operating lease d. Dealers lease
When a lessee makes periodic cash payments for a finance lease, which of the following accounts is increased? A.Lease Liability B.Lease Rental Expense C.Right-of-Use Asset D.Interest Expense
It is that portion of the lease payments that is not fixed in amount but isbased on a factor other than just the passage of time, for example,percentage of sales, amount of usage, price index and market rate ofinterest A. Variable rentB. Contingent rentC. Bargain purchase optionD. Executory cost
In an operating lease, rent collected in advance by the lessor should be treated as? prepaid expense accrued liability accrued asset unearned income

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Variable lease payments based on an index are? a) Excluded from lease liability b) Included using initial index c) Recognized as expense when incurred d) Added to equity