Strayer ACC305 Final Exam Part 1/Strayer ACC305 Final Exam Part 1

Question 1

Which of the following statements is true when comparing the accounting for leasing transactions under U.S. GAAP with IFRS?

The IFRS leasing standard is the subject of over 30 interpretations since its issuance in 1982.

IFRS for leases is more "rules-based" than U.S. GAAP and includes many bright-line criteria to determine ownership.

IFRS does not provide detailed guidance for leases of natural resources,sale-leasebacks, and leveraged leases.

IFRS requires that companies provide a year-by-year breakout of future noncancelable lease payments due in years 1 through 5.

Question 2

A lessor with a sales-type lease involving an unguaranteed residual value available to the lessor at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts?

The minimum lease payments plus the unguaranteed residual value.

The present value of the minimum lease payments.

The cost of the asset to the lessor, less the present value of any unguaranteed residual value.

The present value of the minimum lease payments plus the present value of the unguaranteed residual value.

Question 3

Which of the following is an advantage of leasing?

Off-balance-sheet financing

Less costly financing

100% financing at fixed rates

All of these