Why is the concept of substance over form particularly relevant in lease accounting? a) It helps determine if a lease is effectively a purchase b) It only applies to short-term rentals c) It determines monthly payment amounts d) It focuses solely on legal ownership

Why is the concept of substance over form particularly relevant in lease accounting? a) It helps determine if a lease is effectively a purchase b) It only applies to short-term rentals c) It determines monthly payment amounts d) It focuses solely on legal ownership

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 13GI: What is the basic difference between the accounting procedures used by a lessor for a sales-type...

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Question

Why is the concept of substance over form particularly relevant in
lease accounting?
a) It helps determine if a lease is effectively a purchase
b) It only applies to short-term rentals
c) It determines monthly payment amounts
d) It focuses solely on legal ownership

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Give me answer
When a company sells an asset and simultaneously leases it back, what criteria must be met to apply saleleaseback accounting rather than accounting for the transaction as a loan ?
Which answer is accurate?
In a sale and leaseback transaction, which of the following statements is most incorrect? A. The seller-lessee records a rent expense. B. The buyer-lessor recognizes an gain. C. The seller-lessee derecognizes an asset. D. The buyer lessor recognizes an income.
determining whether a contract is or contains a lease? 1. Which of the following is not one of the criteria when c. Right to obtain substantially all of the economic benefits from use of an identified asset throughout the period of 'identified' if it is implicitly specified in the contract. C. the customer shall not account for the contract as a lease if a. the customer shall not account for the contract as a lease. b. the customer shall account for the contract as a lease. d. the customer shall account for the contract as a lease if that it has the right to direct the use of the asset. PROBLEM 2: MULTIPLE CHOICE - THEORY a. Identified asset b. Identified liability from use of an identified asset throughout the period of d. Right to direct the use of the identified asset throughout the period of use use 2. Which of the following statements is incorrect? a. An asset can be 'identified' if it is implicitly specified at the time it is made available for use by the lessee. b. In a lease…
Question- The contact asset
The accounting concept that is principally used to classify leases into operating and finance is a. Prudence b. Neutrality c. Substance over form d. Completeness
help me to solve it please
An operating lease: Is recorded at its net present value on the balance sheet. Is recorded on the balance sheet as both an asset and a liability. Is recorded at its estimated residual balance on the balance sheet. Is reflected in the footnotes rather than on the balance sheet. Does not appear either on a financial statement or in the footnotes.
What is the basic concept of “substance over form” influences lease accounting? Explain.
How does the analysis of a sale-leaseback differ from the analysis of owning versus leasing?
What is the correct treatment of advance payment made by the lessee to the lessor? A. None of the above B. If the advance payment representing loan is intended to be applied to unpaid rent, the amount is part of the debtor/lessor’s taxable income at the time of receipt of said amount. C. If the advance payment represents security deposit, the amount is part of the lessor’s taxable income. D. If the advance payment represents loan, the amount is part of the lessor’s taxable income.