USGAAP and IFRS Provide Criteria for Distinguishing Operating Leases from Capital

question 60

Multiple Choice

U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is/are not true?

• A)U.S.GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease.
• B)IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.
• C)Firms cannot currently apply the fair value option to capital leases.
• D)The FASB and the IASB have undertaken a joint project involving the lessee's accounting for leases which may result in treating all leases as capital leases.
• E)all of the above

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Definitions:

Alpha Rhythm

A pattern of smooth, regular electrical oscillations in the human brain typically occurring when a person is awake but relaxed, usually in the frequency range of 8-12 Hz.

Theta Rhythm

A pattern of brainwave activity, typically in the range of 4-8 Hz, associated with stages of sleep and meditative states.

Limbic System

In vertebrates, an action system of the brain. In humans, plays a role in emotional responses, motivation, sexual behavior, autonomic responses, and biological rhythms.

Reflex Action

An automatic, involuntary response to a given stimulus that generally functions to restore homeostasis.