Reference no: EM131264371
1. A lease is classified as a capital lease because it contains a bargain purchase option. Over what period of time should the lessee amortize the leased property?
a. The lease term or the economic life of the asset, whichever is shorter.
b. The term of the lease.
c. The economic life of the asset, not to exceed 40 years.
d. The economic life of the asset.
2. The summary of significant accounting policies should disclose the
a. Criteria for determining which investments are treated as cash equivalents.
b. Terms for convertible debt to be exchanged for common stock.
c. Concentration of credit risk of all financial instruments by geographical region.
d. Maturity dates of noncurrent debts.
3. Which of the following does not need to be reported in a summary of significant accounting policies?
I Depreciation expense.
II Basis of profit recognition on long-term construction contracts.
III Composition of sales by segment.
a. I, II and III
b. I and III only
c. II and III only
d. I and II only
Develop a technology proposal
: You have been hired by Crete LLC as an Information Technology consultant to develop a technology proposal. Crete LLC manufactures and distributes solar panel for the consumer market. Your job is to submit a proposal that meets their criteria.
|
Newly formed corporation subsequent to the exchange
: Company A, Inc. is a distributor of office equipment. Company A has a wholly owned susidiary, JK, a equipment manufacturer. Company A has been talking to company B about forming a new business entity. Company B is also a distributor of office equipme..
|
Annual interest rate and annual payments
: The Taylor's have a 9 year old daughter that they wish to provide her college education. They estimate that it will cost $30,000 per year for 4 years when she decides to enter college 10 years from now. How much would the Taylors have to invest today..
|
Invest for fractional parts of the year
: Kunkle company wishes to earn 20% annually on its investments. If it makes an investment that equals or exceeds that rate it considers it a success. Assume that it invests $2 million and gets $500,000 in return at the end of each year for X years. Wh..
|
The lessee amortize the leased property
: A lease is classified as a capital lease because it contains a bargain purchase option. Over what period of time should the lessee amortize the leased property? The summary of significant accounting policies should disclose the
|
Estimate of the company cost of equity
: Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 8 percent, and T-bills are currently yielding 4.5 percent. The company’s most recent dividend was $1.70 per share, and dividends are expected to grow at an annual rate of 7 pe..
|
Analyze the need for unbiased financial reporting
: Analyze the need for unbiased financial reporting. Based on your analysis, determine at least two (2) drivers that may cause financial reporting to be biased. Provide a rationale to support your response. Analyze the audit opinion formulation process..
|
Property estimated economic life at the inception of lease
: One criterion for a capital lease is that the term of the lease must equal a minimum percentage of the leased property's estimated economic life at the inception of the lease. What is this minimum percentage? How much will Salas recognize on its 20X4..
|