Which of the Following Statement Is True

question 31

Multiple Choice

Which of the following statement is true?

• A) Operating leases under GAAP are referred to as finance leases under IFRS.
• B) IFRS has an additional lessor criterion for capitalization that collectability of the payments required from the lessee is reasonably predictable.
• C) IFRS is more general in its provisions for determining if a lease arrangement transfers the risks and rewards of ownership.
• D) Under IFRS, in computing the present value of the minimum lease payments, the lessee is required to use the incremental borrowing rate.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Cost Per Equivalent Unit

The rate used to allocate costs between completed and partially completed production.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially finished goods as a percentage of the work needed to complete them.

Equivalent Units

A concept in cost accounting used to assign costs to partially completed goods, measured in terms of the amount of work done relative to completed units.