The lecture Non-current (Long-term) Liabilities II by Edu Pristine is from the course Archiv - Financial Reporting and Analysis. It contains the following chapters:
5 Stars |
|
5 |
4 Stars |
|
0 |
3 Stars |
|
0 |
2 Stars |
|
0 |
1 Star |
|
0 |
... operating lease from the perspectives of the lessor ...
... Under US GAAP, a lease is classified as a finance lease only, if it fulfills any one of the following four condition ...
... XYZ leases a machinery for three years with an annual lease payment of $15,000. The discount rate is 7%. The scrap value at the end of the lease term is nil. The company follows straight line depreciation. ...
... ABC has given a machinery on lease for three years with anannual lease payment of $12,000. The discount rate is 8%. The scrap value at the end of the lease term is nil. ...
... they are required to pay over the next five years ...
... 1. For a lease, operating lease is accounted and reported as: A. Operating leases are accounted for like: rental agreements, operating lease payments are reported as: lease expense B. Operating leases are accounted for like: Asset purchases ...
... Operating leases are accounted for like rental agreement s (finance leases are like purchases). Operating lease payment s are reported as lease expense. ...
... Which of the following statements about direct financia l leases and operating leases is least accurate for a lessor? A.) Total cash flows are not affected by the accounting treatment of the lease. B.) As compared to an operating lease, a direct financing lease will result in higher operating ...
... With a direct financing lease, the payment is separated into interest revenue (operating inflow) and principal reduction (investing inflow). The accounting treatment of a lease affects the classification of cash flows ...
... Comparing identical companies: One company having record its lease asset as operating lease, another company record its lease asset as finance lease. A company using finance lease will most likely produce a reported return on equity (ROE) ...
... Debt/equity ratio. Cash flow from operations: A. Higher Higher B. Lower Lower C. Higher ...
... The correct answer is Lower/Lower. If company chooses to report lease as operating lease, lease payment will be treated as operating expense and hence cash flow from operations will be lower. ...
... Current Ratio A: Higher Lower Debt-to-equity ratio will be higher for finance lease because of the reported liability which does not appear in case of operating lease. ...