1.At the inception of a lease agreement, the company's debt to equity ratio and rate of return on assets are both affected whether the lease is classified as a capital lease or as an operating lease?

2. In addition to the criteria that must be met by the lessee, the lessor must meet additional conditions for classifications as a nonoperating lease to satisfy the realization principle?

3. When accounting for a nonoperating lease, the lessee records the leased asset at the present value of the minimum lease payments or the asset's fair value, whichever is lower?

4. If the lessee is expected to take ownership of a leased asset at the end of the lease term, the lessor must use an estimated residual value when calculating the lease payments necessary to achieve a desired rate of return?

5. A bargain purchase option is defined as the option of purchasing leased property at a price that is equal to the expected fair value of a leased asset?

6. On a sale'leaseback transaction, any gain on the "sale" portion of the transaction is recognized immediately?

7. GAAP requires that some lease agreements be accounted for as purchases. The theoretical justification for this treatment is that a lease of this type?


I have
1. T
2. F
3. T
4. T
5. F
6. F
7. F

GAAP requires that some lease agreements be accounted for as purchases. The theoretical justification for this treatment is that a lease of this type is substance over form.

You can adjust the width of individual colummns in a table but row
Heights must be the same

You can adjust the width of indivudal colummns in a table,but row
Heights must all be the same true or false

I'm not sure what it is you are trying to answer, but it's not related to this thread. The thread is also over a year old.