Lecture 3- Leasing

1. 1Under IAS 17, finance lease is one that [blank_start]transfers[blank_end] substantially all [blank_start]risks[blank_end] & [blank_start]rewards[blank_end] associated with [blank_start]ownership[blank_end]. Any other lease is an [blank_start]operating lease[blank_end]

   1. Atransfers
   2. Brisks
   3. Crewards
   4. Downership
   5. Eoperating lease
2. 2To know whether something is finance lease any one of following must apply. First two on list are: [blank_start]legal[blank_end] ownership transferred to [blank_start]lessee[blank_end] at [blank_start]end[blank_end] of lease & bargain [blank_start]purchase option[blank_end]
   

   1. Alegal
   2. Blessee
   3. Cend
   4. Dpurchase option
3. 3Next two on list are: lease [blank_start]term[blank_end] for major part of item’s [blank_start]economic life[blank_end] & present value of [blank_start]minimum[blank_end] lease payments [blank_start]equal[blank_end] to most of [blank_start]fair value[blank_end] of asset at start
   

   1. Aterm
   2. Beconomic life
   3. Cminimum
   4. Dequal
   5. Efair value
4. 4Another one on list is lessee [blank_start]benefits[blank_end] from [blank_start]gains[blank_end] or [blank_start]losses[blank_end] in residual value

   1. Abenefits
   2. Bgains
   3. Closses

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Highers Accounting and Finance (Year 2) (Financial Reporting) Quiz on Lecture 3- Leasing, created by George Mariyajohnson on 29/11/2020.

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George Mariyajohnson

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accounting and finance (year 2)financial reportinghighers

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