# CPA Study Cards F5 3-16

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1. An ---------------------- is an annuity with payments at the begginning of the period
annuity due
2. An annuity due is an annuity with payments at the -------------------- of the period
begginning
3. An ----------------- is a financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time
annunity
4. An annunity is a financial product sold by financial institutions that is designed to -------------------- funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time
accept and grow
5. The ------------------------- is the only difference between an ordinary annuity and an annutiy due.
timing of payments
6. In calculating the -------------------- of an ordinary annuity the number of payments is equal to the number of interest periods
persent value
7. In calculating the present value of an ordinary annuity the --------------------- is equal to the number of interest periods
number of payments
8. In calculating the present value of an ordinary annuity the number of payments is equal to the -----------------------------
number of interest periods
9. In calculating the ------------------------------- of an annuity due the number of interest periods is one less than the number of payments
present value
10. In calculating the present value of an annuity due the number of interest periods is ----------------- than the number of payments
one less
11. In calculating the present value of an ------------------- the number of interest periods is one less than the number of payments
annunity due
12. The present value of \$1 is the amount that must be invested ---------- at a specific interest rate so that \$1 can be paid  or recieved in the future
now
13. The present value of \$1 is the amount that must be invested now at a specific interest rate so that \$1 can be paid  or recieved in the ---------------
future
14. The future value of \$1 is the amount that would accumulae at a ---------------- in time if \$1 were invested now.
future point
15. The future value of \$1 is the amount that would accumulae at a future point in time if \$1 were --------------------.
invested now
16. The present value of an ordinary annuity is the ------------------ of a series of identical periodic payments to be made in the future
current worth
17. The present value of an ordinary annuity is the current worth of a series of identical periodic payments to be made in the --------
future
18. The future value of an ordinry annuity is the sum to be received at some --------------------- of identical periodic investments made from the present until that future point
point in the future
19. The future value of an ----------------------- is the sum to be received at some point int he future of identical periodic investments made from the present until that future point
ordinary annuity
20. A lease is a contractual agreement between a ------------- who conveys the right to use real or personal property  and a ----------------- who agree to pay periodic rents over a specified time.
lessor / lessee
21. An operating lease includes a lessor who collects rent and a lessee who uses the leased asset and pays rent for such use.   The lessee merely uses the asset therer is --------------------------------- or of any risk or benefit of ownership.
no transfer of ownership
22. The lessee records rent expense over the lease term usually on an -------------------- unless other methods are warrented
straghtline basis
23. Leases bonus for future expenses should be classified as an asset and amortized using he --------------------------- over the life of the lease
straightline method
24. Leases bonus for future expenses should be classified as an asset and ----------------- using he straightline method over the life of the lease
amortized
25. a leasehold improvement is one that is --------------------- to the property and reverts back to the lesser at the termination of the lease.
permanently affixed
26. a leasehold improvement is one that is permanently affixed to the property and reverts back to the------------ at the termination of the lease.
lesser
27. The value of leasehold improvements should be ----------------- and added to PPE
capitalized
28. leasehold improvements should be depreciated over the lesser of 1. ---------------- or 2. asset/improvement life
lease life
29. leasehold improvements should be depreciated over the lesser of 1. lease life or 2. --------------------------
asset/improvement life
30. a rent kicker is a premium rent payment for specific events  and is a --------------------
period ecpense
31. security deposits required by the lease may be either -------------------------------
refundable or nonrefundable
32. a ---------------------------- security deposit is deferred by the leasor and capitalized by the lessee until the lessor considers it earned
nonrefundable
33. a nonrefundable security deposit is -------------- by the leasor and capitalized by the lessee until the lessor considers it earned
deferred
34. a nonrefundable security deposit is deferred by the leasor and ---------------- by the lessee until the lessor considers it earned
capitalized
35. a refundable security deposit is treated as a recievable by the lessee and a ---------------- by the lessor until the deposit is refunded to the lessee
liability
36. a -------------------- security deposit is treated as a recievable by the lessee and a liability by the lessor until the deposit is refunded to the lessee
refundable
37. For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term
owenreship transfers at end of lease
38. For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2.
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term
Written option for bargan purchase
39. For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3.
4. 75% or more of asset economic life is being committed in lease term
90 % of leased property of lease payment
40. For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4.
75 % or more of asset economic life is being committed in lease term
41. For ------------ capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term
lessee
42. IFRS define a -------------------------- as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the lessee.
finance lease
43. IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with --------------- are transafered to the lessee.
ownership
44. IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the ---------------.
lessee
45. Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a ----------------- or direct financing lease whichever is appropriate

1. Leassee owns the leased property
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable
sales type
46. Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or -------------------- whichever is appropriate

1. Leassee owns the leased property
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable
direct financing lease
47. Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1.
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable
Leassee owns the leased property
48. Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1. Leassee owns the leased property
2.
3. Collectablity of the lease payments is reasonablity predictable
Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
49. Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1. Leassee owns the leased property
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3.
Collectablity of the lease payments is reasonablity predictable
50. In a --------------- lease the fair value of the leased property at the inception of the lease differs from the cost or carrying amount to the lessor.
sales type lease
51. In a sales type lease the -------------- of the leased property at the inception of the lease differs from the cost or carrying amount to the lessor.
fair value
52. In a sales type lease the fair value of the leased property at the inception of the lease -------------- from the cost or carrying amount to the lessor.
differs
53. In a --------------- lease the fair value of the leased property at the inception of the lease is the same as the cost or carrying amount
direct financing
54. In a direct finacing lease the fair value of the leased property at the inception of the lease is the -------------- as the cost or carrying amount
same
55. Under IFRS a leassor classifies a lease as a --------------- if the lease transfers substantially all the risks  and rewards inherent in ownership to the lessee.  In other words the lessee and the lessor use the same critria for lease classification.
finance lease
56. Under IFRS a leassor classifies a lease as a finance lease if the lease transfers substantially all the --------------------- inherent in ownership to the lessee.  In other words the lessee and the lessor use the same critria for lease classification.
risks and rewards
57. Under IFRS a leassor classifies a lease as a finance lease if the lease transfers substantially all the risks  and rewards inherent in ownership to the lessee.  In other words the lessee and the lessor use the ----------- critria for lease classification.
same
58. The lessee treats the capital lease as if an asset were being ----------------------------
purchased over time
59. The lessee records the lease as an asset and a liability at the -------------- of

1. Fair value of the asset at the inception of the lease
or
2. Cost = present value of the minimum lease payments
lower
60. The lessee records the lease as an asset and a liability at the lower of

1.
or
2. Cost = present value of the minimum lease payments
Fair value of the asset at the inception of the lease
61. The lessee records the lease as an asset and a liability at the lower of

1. Fair value of the asset at the inception of the lease
or
2.
Cost = present value of the minimum lease payments
62. When calculating the present value of the minimum lease payments the lessee uses the -------- of the

1. Rate implicit in the lease
2. Lessees incremental borrowing rate(the rate available in the marktet to the lessee)
lower
63. When calculating the present value of the minimum lease payments the lessee uses the lower of the

1. -------------------------------
2. Lessees incremental borrowing rate(the rate available in the marktet to the lessee)
Rate implicit in the lease
64. When calculating the present value of the minimum lease payments the lessee uses the lower of the

1. Rate implicit in the lease
2.----------------------------------
Lessees incremental borrowing rate(the rate available in the marktet to the lessee)
65. Depreciation method

-------------------
<salvage value>
===============
Depresiable basis
/periods of benefit
===============
===============
deprecitaion expense
capitalized lease assets
66. Depreciation method

capitalized lease assets
-------------------------
===============
Depresiable basis
/periods of benefit
===============
===============
deprecitaion expense
<salvage value>
67. Depreciation method

capitalized lease assets
<salvage value>
===============
-------------------------
/periods of benefit
================
==============
deprecitaion expense
Depresiable basis
68. Depreciation method
capitalized lease assets
<salvage value>
===============
Depresiable basis
-----------------------------
===============
===============
deprecitaion expense
/periods of benefit
69. Depreciation method

capitalized lease assets
<salvage value>
===============
Depresiable basis
/periods of benefit
================
==============
--------------------------
deprecitaion expense

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 Author: Joens1313 ID: 164907 Filename: CPA Study Cards F5 3-16 Updated: 2012-08-07 22:39:46 Tags: CPA Study Cards F5 16 Folders: Description: CPA Study Cards F5 3-16 Show Answers:

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