ACC 563 Week 9 Quiz 7 ACC563 Week 9 Quiz 7 ACC/563 Week 9 Quiz 7

ACC 563 Week 9 Quiz 7

•Question 1

 If the lessor incurs initial direct cost to bring about the lease, when are those costs expensed in total during the first year of the lease term?

•Question 2

 Office equipment recorded under a capital lease containing a bargain purchase option should be amortized

•Question 3

 For the lessor to recognize a lease as a sales-type lease, the following must occur.

•Question 4

 Generally accepted accounting principles require that certain lease agreements be accounted for as purchases. The theoretical basis for this treatment is that a lease of this type

•Question 5

 When measuring the present value of future rentals to be capitalized as part of the purchase price in a lease that is be accounted for as a purchase, identifiable payments to cover taxes, insurance, and maintenance should be

•Question 6

 What is the primary accounting issue for lessees?

•Question 7

 Under the capital method of accounting for leases the excess of aggregate rentals over the cost of leased property should be recognized as revenue of the lessor

•Question 8

 The appropriate valuation of an operating lease on the statement of financial position of a lessee is

•Question 9

 When does the lessee report executory costs as an expense?

•Question 10

 When a sale and leaseback occurs

•Question 11

 Which of the following would indicate that the lessee should not classify a lease as a capital lease?

•Question 12

 For a sales-type lease, the net investment is equal to

•Question 13

 In a lease that is recorded as a sales-type lease by the lessor, the difference between the gross investment in the lease and sum of the present values of the components of the gross investment should be recognized as income

•Question 14

 What is the primary accounting issue for lessors?

•Question 15

 For a six-year capital lease, the portion of the minimum lease payment in the third year applicable to the reduction of the obligation should be

•Question 16

 The funded status of a defined benefit pension plan is equal to the

•Question 17

 Some theorists argue that the best measure of the employer’s defined benefit pension plan obligation is the accumulated benefit obligation.

•Question 18

 Which of the following is not a difference between defined benefit pension plans and other postretirement benefits (OPBs)

•Question 19

 What effect did the requirement to replace the minimum liability requirement with the funded status of a pension plan have for overfunded pension plans?.

•Question 20

 Benefits that are not contingent on the employee continuing in the service of the company are

•Question 21

 What effect did the requirement to replace the minimum liability requirement with the funded status of a pension plan have for underfunded pension plans?

•Question 22

 According to SFAS No. 87, prior service costs should be

•Question 23

 Benefits under a pension plan that are not contingent upon an employee’s continuing service are

•Question 24

 The expected postretirement benefit obligation (EPBO) is

•Question 25

 According to SFAS No. 87, “Employer’s Accounting for Pensions,” gains and losses should be

•Question 26

 The corridor approach

•Question 27

 APB Opinion No. 8 set minimum and maximum limits on the annual provision for pension cost. An amount that was always included in the calculation of both the minimum and the maximum limit is

•Question 28

 If the projected benefit obligation of a defined benefit pension plan exceeds the fair value of the pension plan assets, the employer must report

•Question 29

 According to SFAS No. 87, which of the following is never recorded as a component of annual pension cost?

•Question 30

 In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as

Answer

Selected Answer:   

Accrued or prepaid pension cost

Correct Answer:   

Accrued or prepaid pension cost

Sunday, March 22, 2015 1:37:05 PM EDT