CPA FAR Financial Reporting Leases MCQs Test 4

General4 MCQs

1. When does a lessee remeasure the lease liability?

A. A lessee remeasures the lease liability when there is a change in the lease term or a purchase optionB. A lessee never remeasures the lease liabilityC. A lessee remeasures the lease liability only at the end of the leaseD. A lessee remeasures the lease liability only when the lease is modified

2. What is the difference between a sales-type lease and a direct financing lease?

A. A sales-type lease is the same as an operating leaseB. A direct financing lease is the same as an operating leaseC. A sales-type lease does not involve a manufacturer's profitD. A sales-type lease involves a manufacturer's or dealer's profit; a direct financing lease does not

General4 MCQs

3. When does a lessor derecognize the underlying asset?

A. Lessors derecognize the asset in all leasesB. Lessors derecognize the asset in sales-type and direct financing leases, but not in operating leasesC. Lessors never derecognize the assetD. Lessors derecognize the asset only in operating leases

4. What are the similarities between ASC 842 and IFRS 16?

A. ASC 842 and IFRS 16 are identical in all respectsB. ASC 842 and IFRS 16 have no similaritiesC. ASC 842 and IFRS 16 are substantially converged with some differencesD. ASC 842 and IFRS 16 are completely different

CPA FAR Financial Reporting Leases MCQs Test 4

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