ACC 206 Final Exam
Review questions and
answers 2025 already
graded A+
A ___ is a contractual agreement between a lessor and a lessee, that
gives the ____ the right to use specific property, owned by the ______,
for a specified period of time. - answer lease
lessee
lessor
examples of large leased equipment (4) - answer IT equipment,
transportation, construction, agriculture
market share of lessors - answer 1. banks
2. captive leasing companies
3. Independents
A lease conveys the use of an ____ from one party (the lessor) to
another (the lessee) without transferring ownership. - answer
asset
Companies classify lease arrangements as either ___ or _______. In
either case, companies capitalize all ________. - answer finance,
operating
leased assets and liabilities
, From the lessee's perspective, a lessee should classify a lease based
on whether the arrangement is effectively a purchase of the _______ -
answer underlying asset
If the lease transfers control (or ownership) of the underlying asset
to a lessee, then the lease is classified as a ____ lease.
All leases that do not meet any of the finance lease tests are
classified as _____ leases. - answer finance
operating
2 requirements for finance lease - answer non-cancel able
meet at least one of five tests
generally considered to be the fixed, non-cancelable term of the
lease.
can extend lese term period
At the commencement of the lease, the difference between the
renewal rental and the expected fair rental must be great enough to
make exercise of the option to renew_________. - answer lease term
bargain-renewal option
reasonably certain
PV Test Lease payments:
______ payments
______ payments that are based on an index or a rate.
________ residual value
Review questions and
answers 2025 already
graded A+
A ___ is a contractual agreement between a lessor and a lessee, that
gives the ____ the right to use specific property, owned by the ______,
for a specified period of time. - answer lease
lessee
lessor
examples of large leased equipment (4) - answer IT equipment,
transportation, construction, agriculture
market share of lessors - answer 1. banks
2. captive leasing companies
3. Independents
A lease conveys the use of an ____ from one party (the lessor) to
another (the lessee) without transferring ownership. - answer
asset
Companies classify lease arrangements as either ___ or _______. In
either case, companies capitalize all ________. - answer finance,
operating
leased assets and liabilities
, From the lessee's perspective, a lessee should classify a lease based
on whether the arrangement is effectively a purchase of the _______ -
answer underlying asset
If the lease transfers control (or ownership) of the underlying asset
to a lessee, then the lease is classified as a ____ lease.
All leases that do not meet any of the finance lease tests are
classified as _____ leases. - answer finance
operating
2 requirements for finance lease - answer non-cancel able
meet at least one of five tests
generally considered to be the fixed, non-cancelable term of the
lease.
can extend lese term period
At the commencement of the lease, the difference between the
renewal rental and the expected fair rental must be great enough to
make exercise of the option to renew_________. - answer lease term
bargain-renewal option
reasonably certain
PV Test Lease payments:
______ payments
______ payments that are based on an index or a rate.
________ residual value
