CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis *1. Rationale for leasing. 1‚ 2‚ 4 1‚ 2 *2. Lessees; classification of leases; accounting by lessees. 3‚ 5‚ 7‚ 8‚ 14 1‚ 2‚ 3‚ 4‚ 5 1‚ 2‚ 3‚ 5‚ 7‚ 8‚ 11‚ 12‚ 13‚ 14 1‚ 2‚ 3‚ 4‚ 6‚ 7‚ 8‚ 9‚ 11‚ 12‚ 14‚ 15‚ 16 1‚ 2‚ 3‚ 4‚ 5‚ 6 *3. Disclosure of leases. 19 2‚ 4‚ 5‚ 7‚ 8 2‚ 3‚ 5 *4. Lessors;
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Chapter 01 Introduction to Corporate Finance Multiple Choice Questions 1. The person generally directly responsible for overseeing the tax management‚ cost accounting‚ financial accounting‚ and information system functions is the: A. treasurer. B. director. C. controller. D. chairman of the board. E. chief executive officer. 2. The person generally directly responsible for overseeing the cash and credit functions‚ financial planning‚ and capital expenditures is the: A. treasurer. B. director
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To what extent does a mature and cyclical product market drive corporate restructuring? Use an extended example to discuss whether restructuring transforms market and financial performance. An organization which is operating in a mature market means that the product does not have the scope to grow anymore. The product has reached its peak‚ with no prospects to increase‚ as the product is has become most popular in the market and no one else will be willing to buy it. A cyclical market is one which
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Report on Leasing vs. Purchasing The benefits of leasing Computer equipment vs. purchasing Summary The company needs to upgrade its computer equipment. There are two upgrade paths to consider. In this proposal‚ we demonstrate how equipment leases take advantage of the benefits of reduced depreciation and taxation‚ easy scalability‚ reduction of IT staff usage‚ reduced energy costs‚ and reduction of capital spending. The company can free up money overall and maintain better control
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CASE PROBLEM 3 : TRUCK LEASING STRATEGY From the information given‚ let X = number of trucks obtained from a short term lease in months Y = number of trucks obtained from the long term lease The monthly fuel costs are $100‚ and current trucks available are 20. Make the total monthly fuel costs of $2‚000. Length of lease | Cost per month ($) | 1 | 4‚000 | 2 | 3‚700 | 3 | 3‚225 | 4 | 3‚040 | The monthly costs for short term leased trucks are as follow‚ the calculation below include
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entity. 4. The activities of the legal entity are primarily related to securitizations or other forms of asset-backed financings or single-lessee leasing arrangements. 2.) Even though the investment risk is greater than 10% of the total assets for LeaseMed‚ you still have to demonstrate that the equity is sufficient to permit the legal entity to finance its own activities according to ASC 810-10-25-45a‚b‚c. LeaseMed does not meet qualification A because it is not able to issue investment grade
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a. Why is corporate finance important to all managers? Corporate finance is important to all mangers because it lets them know the company’s financial situation before any decisions can be made within the organization. It helps managers develop strategic financial issues associated with achieving goals. Having a solid understanding of corporate finance helps mangers find ways to raise and manage its capital‚ which type of investments the firm should make‚ if profits are earned‚ how these profits
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Having studied this chapter you will be able to: Evaluate the potential value added to a firm arising from a specified capital investment project or portfolio using the net present value model. Project modelling should include explicit treatment of: (a) Inflation & specific price variation (b) Taxation including capital allowances and tax exhaustion (c) Single & multi-period capital rationing to include the formulation of programming methods and the interpretation of their output (d) Probability
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Corporate Finance: An Introduction (Welch) Chapter 1 Introduction 1.1 The Goal of Finance: Relative Valuation 1) Which of the following statements is true? A) In finance‚ it is important to determine an asset ’s absolute value. B) The relative value of any asset is‚ at best‚ a lucky guess. C) The true value of an asset is unaffected by externalities such as interest rate levels‚ the state of the economy‚ etc. D) Valuation is not an exact science
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over other types of firms. One of them is the unlimited liability.Answer | | | | | Selected Answer: | False | Correct Answer: | False | | | | | * Question 4 1 out of 1 points | | | Two important financing decisions for a corporate financial manager are debt policy decision and dividend policy decision. Debt policy asks what level of debt is best for the firm. The dividend policy asks what dividend payout ratio is best for the firm.Answer | | | | | Selected Answer: |
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