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7. Which of the following is not a correct statement about the lease rentals?
a. |
It should be fixed for the entire lease period |
|
b. |
Fixing is not allowed in any case () |
|
c. |
It can be tied up to a known benchmark acceptable to both the parties |
|
d. |
It can be fixed on periodic basis but periodic increment should be agreed upon |
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- (4) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income A. should be amortized over the period of the lease using the effective interest method. B. should be amortized over the period of the lease using the straight-line method. C. does not arise. D. should be recognized at the lease's expiration. E. None of these answer choices are correct.The answer is incorrect. Can you at least calculate the value of the lease liability at the commencement in the lease?Which of the following is not included in the lease payments for the purpose of computing the lease liability? A. Fixed payments less any lease incentives receivable B. Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date C. Guaranteed residual value D. Contingent rent based on level of sales
- In relation to a short-term operating lease, which of the following statements is NOT correct? a. The lessee will be responsible for repairs and maintenance of the leased asset b. The lease period will not cover the leased asset’s useful economic life c. The asset and lease obligation will not be recorded in the statement of financial position d. An operating lease is a rental agreement Clear my choiceWhich of the following is incorrect regarding the accounting for leases by a lessee? A. A lessee recognizes the same total amount of expense on a lease whether it uses the general recognition or the recognition exemption under PFRS 16. B. The interest expense on a lease liability decreases each period C. According to PFRS 16, executory costs, such as insurance and real property taxes, are always excluded from lease payments regardless of whether these costs transfer goods or services to the leasee. D. A lessee shall allocate the total consideration in a contract to the lease components and non-lease components of the contract12.Which of the following statements correctly describes the initial measurement of a lease liability by a lessee under IFRS? Select one: a. The cost of any bargain purchase option is included in the calculation of the lease liability b. The lease liability is discounted to its present value using the lessee’s incremental borrowing rate c. Guaranteed and unguaranteed residual values are included in the calculation of the lease liability at initial measurement d. All variable lease payments are included in the calculation of the lease liability at initial measurement
- Which one of the following would normally lead to a lease being classified as an operating lease? a. The lease term is for a period of more than half of the expected economic life of the underlying asset. b. At the inception date of the lease agreement, the present value of the total lease payments is for an amount substantially less than the fair value of the underlying asset. c. The lease is cancellable, and all losses associated with the cancellation will be incurred by the lessee. d. It is reasonably certain at the inception date that the lessee will exercise an option to purchase the underlying asset at the end of the lease term for a price substantially lower than its expected fair value.IFRS(a) What is included in the measurement of (1) the lease liability and (2) the right-ofuse asset?(b) Besides the non-cancelable term of the lease, what are other considerations indetermining the “lease term”?(c) When should a lessee account for a lease modification? What procedures arefollowed?Which of the following is not one of the procedures for accounting by the lessee for a decrease in lease scope? a. both are required accounting procedures b. both are not required accounting procedures c. Adjustment of the decreased finance lease liability to the present value of future lease payments d. Decrease in the right of use asset equal to that of the peso decrease in finance lease liability to reflect decrease in scope
- If, as part of the accounting for a lease, the lessee debits an asset and credits a liability, then the lease must be a(n): A. finance lease. B. operating lease. C. operating lease or finance lease. D. none of the above. thanks for helpPacker Company (the lessor) concludes that its lease meets one of the tests to be classified as a sales-type lease. However, collection of lease payments is not probable. In this case, how should Packer account for any lease payments received?1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue a. should be recognized in full as revenue at the lease's inception. b. should be recognized over the period of the lease using the straight-line method. c. should be recognized over the period of the lease using the interest method. d. does not arise.