fAR 5 EX A

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Author:
Joens1313
ID:
224091
Filename:
fAR 5 EX A
Updated:
2013-06-16 23:21:27
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FAR EX
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FAR 5 EX A
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  1. Lessee shall record an operating lease as rental expense using the straight line basis even if payemnts are made on some other basis, unless another systematic and rational basis is more representative.
    rental expense
  2. Lessee shall record an operating lease as ---------------------- using the ------------------- even if payemnts are made on some other basis, unless another systematic and rational basis is more representative.
    straight line basis
  3. A lessee had a  ten year capital lease requireing equal annual payments.  The reduction of the lease leabilty in year 2 should equal:

    a. The current liability shown for the lease at the end of year 1

    b. The surrent liability shown for the lease at the end of year 2

    c. The reduction of hte lease obligation in year 1

    d. One-tenth of the original lease leabiltity
    a. the current liabiltiy shown for the lease at the end of year 1
  4. There is ------------ interest component for an operating lease
    no
  5. a 20 year property lease classified as an operting lease provides a 10% increase in annual payments every 5 years.  In the 6th year compared to the 5th year the lease will cause the following expenses to increase

           rent         interest
    a       no              yes
    b       yes             no
    c        yes            yes
    d        no              no
    d.   no               no
  6. unearned interest in a sales type (finance) lease is ------------------------ over the period of the lease using the effective interest method
    amortized
  7. unearned interest in a sales type (finance) lease is amortized over the period of the lease using the ---------------------------
    effective interest method
  8. what is an annuity due
    an annueity due (annuity in advance) is an annuity with payments at the beginning ofthe period
  9. an ------------------------------ is an annuity with payments at the beginning ofthe period
    annuity due
  10. ------------------------------should be depreciated in accordance with the lessees normal depreciation policy not to exceed the estimated usefullife if hte lease transfers ownership or contains a bargan purchase option.
    capitalized equipment
  11. capitalized equioment should be depreciated in accordance with the lessees ------------------------------------- not to exceed the estimated usefullife if hte lease transfers ownership or contains a bargan purchase option.
    notmal depreciation policy
  12. ------------------------------should be depreciated in accordance with the lessees normal depreciation policy not to exceed the estimated usefullife if the lease transfers ownership or contains a bargan purchase option.
    capitalized equipment

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