In a Lease That Is Appropriately Recorded as a Direct

question 48

Multiple Choice

In a lease that is appropriately recorded as a direct financing lease (ASPE) or finance lease (IFRS) by the lessor, the unearned interest income is

• A) amortized and taken into income over the lease term using the effective interest method.
• B) amortized and taken into income over the lease term using the straight-line method.
• C) taken into income at the inception of the lease.
• D) taken into income at the end of the lease.

Identify the different types of users of accounting information and their needs.

Analyze and prepare a balance sheet from given account balances and transactions.

Understand the principles guiding the recording of assets and their valuation.

Recognize the importance of ethical values in accounting.

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Definitions:

Raw Materials

The basic substances in their natural, modified, or semi-processed states, used as inputs for the production process in manufacturing goods.

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the budgeted overhead costs set at the beginning of a period.

Fixed Manufacturing Overhead

Costs associated with production that remain constant, regardless of the scale of production output, including salaries of managerial staff and depreciation of factory equipment.

Fixed Overhead Applied

The portion of the estimated fixed overhead costs charged to production over a specific period based on a predetermined rate.