With Respect to Operating Leases,lessors Are Required Under AASB 117

question 11

Multiple Choice

With respect to operating leases,lessors are required under AASB 117 Leases,to make the following disclosures:
I Total contingent rents recognised as income in the period.
II Future minimum lease payments under individual,cancellable operating leases,separately.
III A general description of the lessee's leasing arrangements.
IV Future minimum lease payments under non-cancellable operating leases in aggregate.

• A)I,II and III only
• B)I,III and IV only
• C)II and III only
• D)I,II and IV only.

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Definitions:

Production Costs

Expenses directly related to the creation of goods and services, including materials, labor, and overhead costs.

Fixed Production Costs

Costs that do not change with the level of production, such as rent, insurance, and salaries.

Variable Production Costs

Costs that change in proportion to the level of production activity, such as raw materials and direct labor.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed overhead as a period expense.