ACC 490 Accounting Ccapstone Mid Term exam Part 1 (Strayer University)

As a generalized statement regarding lease accounting, which statement best describes U.S. versus international accounting principles?

3) When a lessor receives cash on an operating lease, which of the following accounts is increased?

4) Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be

5) Lessee leased some land and buildings from Lessor. There was no transfer of ownership and no bargain purchase option. If the fair value of the land is less than a certain percentage of the total fair value of the leased property at the inception of the lease, both the lessee and the lessor may consider the land and buildings as a single unit. What is that percentage?

6) Which of the following facts would require a lessee to classify a lease as a capital lease?

7) Any initial direct costs incurred by the lessor for a sales-type lease should be

8) A direct financing lease differs from a sales-type lease in that

9) Which of the following is not a required disclosure by a lessee of an operating lease?

10) In a sales-type lease

11) A capital lease should be recorded in the lessee's accounts at the inception of the lease in an amount equal to

12) On January 1, Lessor Company incorrectly recorded a sales-type lease as an operating lease. As a result of this error, the reported amount for Lessor Company's property, plant, and equipment leased to others is

13) The authorized shares of capital stock is the number of shares

14) Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n)

15) The measurement date of an employee compensatory stock option plan under the intrinsic value method is

16) Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from

17) The corporate form of organization is important to the U.S. economy because

18) Which of the following types of corporations is owned or operated by a government unit?

19) Preferred stockholders share with common stockholders in any "extra" dividends when the preferred stock is

20) Under the fair value method, the grant date is the date

21) A noncompensatory stock option plan is designed to

22) Dividends in arrears pertain to

23) The preference to dividends that preferred stockholders have is

24) When stock options are exercised by an employee under a compensatory stock option plan, the issuance of the common stock is recorded at the

25) Which set of accounting principles directly uses the term "reserve"?