A lessor with a sales-type lease involving an unguaranteed residual value 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 sales price less the present value of the residual value.   The lease payments plus the unguaranteed residual value.   The cost of the asset to the lessor, less the present value of any unguaranteed residual value.   The present value of the lease payments plus the present value of the unguaranteed residual value.

Q: Which of the following is not included in the lease payments for the purpose of computing the lease…

A: This question deals with the IFRS 16 "Leases". When lessee lease the asset from the lessor then…

Q: We classify a lease as a finance lease if:   Multiple Choice   the present value of lease…

A: A lease is a written agreement that indicating the conditions within which a lesser acknowledges to…

Q: All of the following would normally lead to a finance lease, except

A: As per IAS – 17 Leases, the following situations would generally be considered to classify the lease…

Q: 3. Which of the following is true in regards to the reassessment of the lease term? A. If the lessee…

A: Lease term is the time period agreed by the lessee and the lessor for which the asset shall be…

Q: Answer True or False Initial direct costs are immediately recognized as an expense by the lessor…

A: Per Per PFRS 16 Inidial direct cost are the incremental cost of obtaining a lease that would not…

Q: the year when payment is made in advanced shall be: O Lease liability at inception of the lease…

A: lease is a contract that outline the term under which one party agree to when can a asset to another…

Q: The situation which would normally lead to a lease being classified as a finance lease include all…

A: Lease contract can be defined as an agreement between two parties, lessor and lessee. It is contract…

Q: The discount rate influences virtually every amount reported in connection with a lease by both the…

A:

Q: n an operating lease, when the annual lease payment is greater than the straight-line amortization…

A: Prepaid rent is the payment of money in advance for the purpose of rent. It would be recognized as a…

Q: Lease bonus paid by the lessee in a short-term lease must be accounted by * O recognizing the lease…

A: Solution : lease bonus paid by the lessee in a short term lease must be accounted by correct answer…

Q: Guaranteed residual value is a fixed amount required by the lessor at the termination of the lease…

A: Guaranteed Residual Value: It is the Value which is guaranteed by the lessee to the lessor at the…

Q: For a direct-financing lease, the gross investment of the lessor is equal to the a. Present value of…

A:

Q: Which of the following describes the lease term test? If the lease term is 75% or more of the…

A: As per IFRS 16 In a finance lease  the lessor will lose the ownership of leased asset. Thus he…

Q: Lease payments are payments made by a lessee to a lessor relating to the right to use an underlying…

A: The standard states that lease payments for the lessee includes the following a.) Exercise price of…

Q: carrying amount of the finance lease liability from the capitalization of a lease would be…

A: A lease agreement between the two parties in which the one party (known as finance company) is the…

Q: A lessee with a lease containing a bargain purchase option should depreciate the leased asset over…

A: A lesseewith an lease containing a bargain purchase option should depreciate the leased asset over…

Q: The appropriate valuation of an operating lease on the statement of financial position of a lessee…

A: Lease: It can be defined as a contractual agreement where one party known as lessor grants the right…

Q: For which of the following conditions will the lessor classify a lease as a sales-type lease? A.…

A: Lease classify as sale type lease means it is a financial lease where lessor has given right to use…

Q: For a finance lease, the lease obligation of the lessee would be reduced periodically by  a. the…

A: Solution: For a finance lease, the lease obligation of the lessee would be reduced periodically by…

Q: The discount rate influences virtually every amount reported in connection with a lease by both the…

A: The lessor’s discount rate is the effective interest rate when determining the present value of…

Q: Gross investment in the lease is equal to    a. Sum of the lease payments receivable by a lessor…

A: Solution Concept Gross investment in the lease =minimum lease payment + unguaranteed residual value…

Q: Lease A does not contain a bargain purchase option, but the lease term is equal to 90% of the…

A: Correct option is A  Lease A - Finance lease  Lease B - Finance lease

Q: Which one of the following would normally lead to a lease being classified as an operating lease?…

A: Solution: "At the inception date of the lease agreement, the present value of the total lease…

Q: The Harris Company is the lessee on a four-year lease with the following payments at the end of each…

A: Leasing is an agreement which is usually written between the lessor and the lessee which allows for…

Q: , What is the balance sheet value of the lease asset and the lease liability? 2 Why was the lease…

A: A debenture pays a regular interest rate or coupon rate return to investors

Q: 3. For a finance lease, the lease obligation of the lessee would be reduced periodically by * a. the…

A: SOLUTION-   FINANCE LEASE INVOLVES TRANSFER OF RISK AND REWARDS , THE LEASED ASSETS IS RECORDED IN…

Q: Guaranteed residual value is a fixed amount required by the lessor at the termination of the lease…

A: Guaranteed Residual value is the value of the asset which has been given on the lease to the lessee…

Q: A lease that has a lease term (including any options to terminate or renew that are reasonably…

A: Short-term LeaseThis is a type of leasing which has a maximum lease term ranging from 1 year or…

Q: A lease that has a lease term (including any options to terminate or renew that are reasonably…

A: Short-term Lease This is a type of leasing which has a maximum lease term ranging from 1 year or…

Q: For a finance lease, the lease obligation of the lessee would be reduced periodically by    a. the…

A: Solution:   For a finance lease, the lease obligation of the lessee would be reduced periodically by…

Q: Net investment in a sales-type lease is equal to

A: Net investment in sales type lease is recognized by lessor as amount of lease receivable. Option (a)…

Q: Net investment in a sales-type lease is equal to Gross investment less unearned financing revenue…

A: Sales-type lease is a type of lease where the lessor is assumed to sell the property to lessee.…

Q: Explain which of following would result in the lessee classifying the lease as a finance lease. a.…

A: lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…

Q: ow will a 20-year lease obligation appear on the lessee's statement of financial position? a.as a…

A: Financial lease is that lease where lessor has given right to use the assets to lessee  which cover…

Q: A finance lease situation is most likely when the lease term is equal to or greater than Select…

A: A finance lease is a lease in which risks and rewards of the leased asset are transferred to the…

Q: . The primary difference between a direct-financing lease and a sales-type lease is the amount of…

A: Lease is a contract or agreement between two parties in which one party provides it's asset for use…

Q: There are two parties in any lease contract—the lessee and the lessor. To a lessor, a lease analysis…

A: The step involved will be: Determining the lease payments minus income taxes and any expenses…

Q: Which of the following statements is false regarding the accounting for leases?  The lessor may not…

A: From the above options, the fourth option is false: 'A lessor included a rent collected in advance…

Q: Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property…

A: Solution: Under a direct financing lease, the excess of aggregate rentals over the cost of the…

Q: The initial direct costs incurred in relation to a lease transaction is added to get the right of…

A: The initial direct costs incurred in relation to a lease transaction is added to get the right of…

Q: Which of the following statements is false regarding the accounting for leases? The amount of lease…

A: A lease rental collected in Advance is treated as Rent Advance and is included in the  Non current…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.