FAR 5 Questions 3

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Joens1313
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222759
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FAR 5 Questions 3
Updated:
2013-06-07 00:51:45
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FAR Questions
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FAR 5 Questions 3
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  1. For a capital (finance) lease the amount recorded initially by the lessee as a liability should normally be what?
    Equal to the present value of the minimum lease payment at the beginning of the lease.
  2. When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an operating lease?
    Over the life of the lease
  3. All costs associated with the issuance of bonds should be ----------------------------- over the outstanding term of the bonds.
    capitalized and amortized
  4. All costs associated with the issuance of bonds should be capitalized and amortized over the ------------------------- of the bonds.
    outstanding term
  5. When the lease in an IFRS sale leaseback transaction is classified as a finance lease all profit is ------------------------over the lease term
    deferred and amortized
  6. The interest rate on convertible debt is generally -------------- then nonconvertible debt because of the value of the conversion feature.
    lower
  7. The interest rate on convertible debt is generally lower then nonconvertible debt because of the value of the -------------------------------.
    conversion feature
  8. Under IFRS bond issue costs are ------ ----------------------------------------- of the liability and included in the debt entry to bond discount upon issuance.
    deducted from the carrying value
  9. Under ------ bond issue costs are deducted from the carrying value of the liability and included in the debt entry to bond discount upon issuance.
    IFRS
  10. Operating lease expense must be recorded  ------------- over the life of the lease.
    equally
  11. ----------------------------- must be recorded equally over the life of the lease.
    operating lease expense
  12. over time, the carrying amount of a bond sold at a discount will ------------------
    increase
  13. over time, the carrying amount of a bond sold at a -------------- will increase
    discount
  14. over time the carrying amount of a bond sold at a premium will ------------
    decrease
  15. over time the carrying amount of a bond sold at a ------------ will decrease
    premium
  16. In a  ------------------------- lease the difference between the fair value of the leased asset and its cost at inception is recognized as profit
    Sales type (finance)
  17. In a  sales type (finance) lease the difference between the --------------- of the leased asset and its cost at inception is recognized as profit
    fair value
  18. In a  sales type (finance) lease the difference between the fair value of the leased asset and its --------------------- is recognized as profit
    cost at inception
  19. --------------------------- on the sale of bonds is included in the carrying value of the bonds on the balance sheet regardless of whether the bonds are assets or liabilities
    Discount or premium
  20. Discount or premium on the sale of bonds is included in the ------------- of the bonds on the balance sheet regardless of whether the bonds are assets or liabilities
    carrying value
  21. Bond issue costs are a ---------------------- and are not netted or included in the carrying value of the bonds on the balance sheet under US GAAP
    deferred charge
  22. Bond issue costs are a deferred charge and are not ------------------------- in the carrying value of the bonds on the balance sheet under US GAAP
    netted or included

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