The ALTC's Learning and Teaching Academic Standards Statement for Accounting

question 7

Multiple Choice

The ALTC's Learning and Teaching Academic Standards Statement for Accounting does NOT include which of the following threshold learning outcomes?

• A)Independence
• B)Judgement
• C)Knowledge
• D)Application skills

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Definitions:

Initial Direct Costs

The expenditures that a company can directly attribute to acquiring a new lease or originating a loan.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights similar to ownership of the asset.

Prepaid Asset

Costs that are paid for upfront and listed as assets prior to their utilization or consumption.

Interest Rate Implicit

The interest rate in a lease that, when applied to the lease payments, discounts them to equal the fair value of the leased asset.