USGAAP and IFRS Provide Criteria for Distinguishing Operating Leases from Capital

question 162

Multiple Choice

U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is/aretrue?

• A)Under the capital, or finance, lease method, the lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.
• B)Under the capital, or finance, lease method, the lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.
• C)Under the capital, or finance, lease method, the lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.
• D)Under the capital, or finance, lease method, the lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease.
• E)all of the above

Describe the functions of entrepreneurs in the economy and differentiate between various economic resources.

Distinguish between macroeconomics and microeconomics and their areas of study.

Appreciate the role and limits of economic models and theories in explaining real-world phenomena.

Recognize the importance of investment in accumulating capital goods.

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Definitions:

Affect

Refers to the emotional or feeling component of human behavior and consciousness, often associated with mood, temperament, and motivation.

Collective Effervescence

A sociological term referring to the energy, harmony, and shared sense of identity that arises in groups during rituals and shared activities.

Prosocial Form

Behaviors or actions intended to benefit others or society as a whole, promoting positive social interactions and relationships.

Affective Energy

Refers to the dynamic emotional forces that drive social interactions and relationships.