Financial Accounting Standards Board (FASB) Statement #13 Requires That for an Unqualified

question 16

Multiple Choice

Financial Accounting Standards Board (FASB) Statement #13 requires that for an unqualified audit report, financial (or capital) leases must be included in the balance sheet by reporting the

• A) residual value as a fixed asset.
• B) residual value as a liability.
• C) present value of future lease payments as an asset and also showing this same amount as an offsetting liability.
• D) undiscounted sum of future lease payments as an asset and as an offsetting liability.
• E) undiscounted sum of future lease payments, less the residual value, as an asset and as an offsetting liability.

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Definitions:

Depolarization Phase

Change in the electric charge difference across the plasma membrane that causes the difference to be smaller or closer to 0 mV; phase of the action potential in which the membrane potential moves toward zero, or becomes positive.

Action Potential

A rapid and temporary electrical charge that passes along the membrane of a nerve or muscle cell, initiating activity.

Repolarization Phase

The stage of a heartbeat where heart muscle cells return to their resting electrical state, following depolarization.

Depolarization Phase

The stage in the action potential of a cell in which the cell membrane's charge becomes more positive compared to its resting state.