Fsa Quiz 3
Name: ______________________
Class: _________________
Date: _________
ID: A
Quiz 3 Mock
Multiple C hoice
Identify the choice that best completes the statement or answers the question.
____
1. All of the following are the general principles underlying the valuation of liabilities e xcept:
a. Liabilities requiring future cash payments appear at the present value of the required future cash flows discounted at an interest rate that reflects the uncertainty that the firm will be able to make the cash payments.
b. The fair value of a liability cannot differ from the amount appearing on the balance sheet, particularly for long-term debt.
c. Liabilities representing cash advances from customers appear at the amount of the cash advance.
d. Liabilities requiring the future delivery of goods or services appear at the estimated cost of those goods and services.
____
2. All
a.
b.
c.
d.
____
3. Under U.S. GAAP, which of the following items would require a lessee to classify a lease of equipment as a capital lease?
a.
b.
c.
d.
____
of the following are typically recognized as accounting liabilities e xcept:
Notes Payable
Warranties Payable
Purchase Commitments
Subscription Fees Received in Advance
There is no transfer of ownership to the lessee at the end of the lease term.
The lease does not contain a bargain purchase option.
The lease term is 90% of the estimated economic life of the lease property.
The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.
4. Which of the following is n ot a condition that requires capital lease accounting?
a. The lease term extends for more than 70% of the assets economic life.
b. The lease agreement transfers ownership of the leased asset to the lessee.
c. The lease agreement contains a bargain purchase option.
d. The present value of the minimum lease payments equals or exceeds 90% of the fair market value of the
Class: _________________
Date: _________
ID: A
Quiz 3 Mock
Multiple C hoice
Identify the choice that best completes the statement or answers the question.
____
1. All of the following are the general principles underlying the valuation of liabilities e xcept:
a. Liabilities requiring future cash payments appear at the present value of the required future cash flows discounted at an interest rate that reflects the uncertainty that the firm will be able to make the cash payments.
b. The fair value of a liability cannot differ from the amount appearing on the balance sheet, particularly for long-term debt.
c. Liabilities representing cash advances from customers appear at the amount of the cash advance.
d. Liabilities requiring the future delivery of goods or services appear at the estimated cost of those goods and services.
____
2. All
a.
b.
c.
d.
____
3. Under U.S. GAAP, which of the following items would require a lessee to classify a lease of equipment as a capital lease?
a.
b.
c.
d.
____
of the following are typically recognized as accounting liabilities e xcept:
Notes Payable
Warranties Payable
Purchase Commitments
Subscription Fees Received in Advance
There is no transfer of ownership to the lessee at the end of the lease term.
The lease does not contain a bargain purchase option.
The lease term is 90% of the estimated economic life of the lease property.
The present value of the contractual minimum lease payments is 75% of the fair value of the leased property.
4. Which of the following is n ot a condition that requires capital lease accounting?
a. The lease term extends for more than 70% of the assets economic life.
b. The lease agreement transfers ownership of the leased asset to the lessee.
c. The lease agreement contains a bargain purchase option.
d. The present value of the minimum lease payments equals or exceeds 90% of the fair market value of the