Which Element(s)regarding the Finance Leases Should Be Disclosed

question 5

Multiple Choice

Which element(s) regarding the finance leases should be disclosed?

• A) For each class of asset,the net carrying amount at the balance sheet date.
• B) Contingent rents recognized in income for the period.
• C) Reconciliation between the total of future minimum lease payments at the balance sheet date,and their present value.
• D) All of these

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Definitions:

Straight-Line Method

An accounting method of depreciation where a fixed amount is charged annually over the useful life of the asset.

Net Liability

Net liability refers to the total liabilities of an entity minus its assets, indicating a financial position where obligations exceed resources.