Long-term Liabilities and Equities

Long-term Liabilities and Equities

University

22 Qs

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Long-term Liabilities and Equities

Long-term Liabilities and Equities

Assessment

Quiz

Financial Education

University

Hard

Created by

Võ Giang

FREE Resource

22 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is least likely an objective of the IAS 19 disclosures regarding defined benefit plans?

Explain the characteristics and risks of the firm’s defined benefit plan.

Identify amounts in the financial statements relating to defined benefit plans.

Describe how defined benefit plans affect amounts, timings, and uncertainties relating to future net income.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The least likely reason for a corporation to lease rather than buy a fixed asset is to:

benefit from appreciation in the asset’s value.

conserve cash at lease inception.

decrease its financing costs.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

ABC Company leases manufacturing equipment for five years with annual payments of $20,000. The company will return the equipment to the lessor at the end of the lease. The term of the lease is equal to the equipment's useful life. Under U.S. GAAP, the company will:

report the lease as an operating lease.

record a right-of-use asset on the balance sheet.

recognize an amortization expense equal to the principal repayment each period.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A lessor who enters into a finance lease is least likely to:

add an asset to her balance sheet.

amortize a receivable.

record a profit.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The difference between the fair value of a defined benefit pension plan's assets and its estimated benefit obligation is recognized:

as an actuarial adjustment in other comprehensive income.

on the balance sheet as a net pension asset or liability.

on the income statement as pension expense.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

For an operating lease, the lessor must disclose:

interest recognized in the income statement relating to the lease receivable asset.

impairments of the leased asset.

selling profit or loss on derecognition of the leased asset.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

For an operating lease, the leased physical asset appears on the balance sheet of:

neither the lessor nor the lessee.

the lessor.

the lessee.

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