Answered: Variable lease payments based on an…

Variable lease payments based on an index are? A. Included using initial index B. Excluded from lease liability C. Recognized as expense when incurred D. Added to equity

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 1CIC

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Variable lease payments based on an index are? A. Included using initial index B. Excluded from lease liability C. Recognized as expense when incurred D. Added to equity

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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
Question related to Financial Accounting: How do executory costs affect capital lease classification tests? A. Include in minimum lease payments B. Add to lease liability only C. Capitalize as separate asset D. Exclude from payment calculations
Which of the following cash flows is classified as an investing cash flow? A. interest portion of payment received under a direct financing lease B. reduction of a direct financing lease receivable C. purchase of an asset leased under a sales-type lease D. payment received under an operating 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
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The following statements relate to the impact on the financial statements for operating vs. finance leases. Indicate all statements that are correct. Select one or more: a. Net Income is higher at first when a lease is classified as a finance lease. b. The right of use asset is shown at a higher amount for a finance lease. c. Operating Income is lower when a lease is classified as an operating lease. d. The lease liability is measured as the present value of future cash flows for both operating and finance leases. PreviousSave AnswersNext
The costs of leasing are a. the down payment b. the lease payments. c. the buyout. d. a. and b. e. a., b., and c.
When a lessee makes periodic cash payments for a finance lease, which of the following accounts is decreased? A.Right-of-Use Asset B.Lease Rental Expense C.Interest Expense D.Lease Liability
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In an operating lease, rent collected in advance by the lessor should be treated as? prepaid expense accrued liability accrued asset unearned income
Compared to using a fi nance lease, a lessee that makes use of an operating lease will mostlikely report higher:A . debt.B . rent expense.C . cash fl ow from operating activity.
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