Answers Included
Complete chapters included in Package Deal
Chap 15 2025 Release - Spiceland
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) At the beginning of a lease agreement, a lessee’s debt to equity ratio and rate of return on
assets are both affected regardless of whether the lease is classified as a finance lease or as an
operating lease.
1) ______
⊚ true
⊚ false
Question Details
AICPA : FN Risk Analysis
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-1 (Static) At the beginning of a lease
agreement...
2) Finance leases are agreements that are formulated outwardly as leases, but in substance are
essentially installment purchases.
2) ______
⊚ true
⊚ false
Question Details
AICPA : FN Risk Analysis
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Finance lease compared to installment note
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-2 (Static) Finance leases are agreements
that are formulated...
1
,3) If the lease begins “at or near the end” of an asset’s economic life, the criterion of the lease
term being for the major part of the economic life should not be applied when classifying the
type of lease. This is consistent with the basic premise of this criterion that most of the risks
and rewards of ownership occur prior to that time.
3) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-3 (Static) If the lease begins “at or
near the end” of an...
4) If the underlying asset is of such a specialized nature that it is expected to have no alternative
use to the lessor at the end of the lease term, then the lease must be considered an operating
lease.
4) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Finance-Sales-type-Operating
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-4 (Static) If the underlying asset is of such
a...
2
,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.
5) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-5 (Static) A bargain purchase option is
defined...
6) In accounting for operating leases, the lessee will recognize lease expense on a straight-line
basis.
6) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-04 Demonstrate how the lessor and lessee account for all transactions associa
Topic : Lessee–Operating lease–Total lease expense
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-6 (Static) In accounting for operating
leases...
3
, 7) When the lessee guarantees an estimated residual value of $75,000, the amount the lessee
records as a right-of-use asset and as a lease liability is increased by $75,000.
7) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Business Competency : Analytical Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-06 Explain the impact on lease accounting of uncertainties, including uncerta
Topic : Lessee or Lessor–Journal entries
Topic : Uncertainty–Residual value
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-7 (Static) When the lessee guarantees an
estimated residual...
8) When a lease agreement does not include a guarantee by the lessee that the lessor will
recover a specified residual value at the end of the lease term, the lessor still includes an
estimate of that residual value in its lease receivable.
8) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-06 Explain the impact on lease accounting of uncertainties, including uncerta
Topic : Lessee or Lessor–Journal entries
Topic : Uncertainty–Residual value
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-8 (Static) When a lease agreement does not
include...
4
Complete chapters included in Package Deal
Chap 15 2025 Release - Spiceland
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) At the beginning of a lease agreement, a lessee’s debt to equity ratio and rate of return on
assets are both affected regardless of whether the lease is classified as a finance lease or as an
operating lease.
1) ______
⊚ true
⊚ false
Question Details
AICPA : FN Risk Analysis
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-1 (Static) At the beginning of a lease
agreement...
2) Finance leases are agreements that are formulated outwardly as leases, but in substance are
essentially installment purchases.
2) ______
⊚ true
⊚ false
Question Details
AICPA : FN Risk Analysis
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Finance lease compared to installment note
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-2 (Static) Finance leases are agreements
that are formulated...
1
,3) If the lease begins “at or near the end” of an asset’s economic life, the criterion of the lease
term being for the major part of the economic life should not be applied when classifying the
type of lease. This is consistent with the basic premise of this criterion that most of the risks
and rewards of ownership occur prior to that time.
3) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-3 (Static) If the lease begins “at or
near the end” of an...
4) If the underlying asset is of such a specialized nature that it is expected to have no alternative
use to the lessor at the end of the lease term, then the lease must be considered an operating
lease.
4) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Finance-Sales-type-Operating
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-4 (Static) If the underlying asset is of such
a...
2
,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.
5) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-01 Explain why companies choose to lease assets and describe each of the crit
Topic : Lease classification–Criteria
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-5 (Static) A bargain purchase option is
defined...
6) In accounting for operating leases, the lessee will recognize lease expense on a straight-line
basis.
6) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 15-04 Demonstrate how the lessor and lessee account for all transactions associa
Topic : Lessee–Operating lease–Total lease expense
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-6 (Static) In accounting for operating
leases...
3
, 7) When the lessee guarantees an estimated residual value of $75,000, the amount the lessee
records as a right-of-use asset and as a lease liability is increased by $75,000.
7) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Business Competency : Analytical Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-06 Explain the impact on lease accounting of uncertainties, including uncerta
Topic : Lessee or Lessor–Journal entries
Topic : Uncertainty–Residual value
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-7 (Static) When the lessee guarantees an
estimated residual...
8) When a lease agreement does not include a guarantee by the lessee that the lessor will
recover a specified residual value at the end of the lease term, the lessor still includes an
estimate of that residual value in its lease receivable.
8) ______
⊚ true
⊚ false
Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Business Competency : Reflective Thinking
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 15-06 Explain the impact on lease accounting of uncertainties, including uncerta
Topic : Lessee or Lessor–Journal entries
Topic : Uncertainty–Residual value
Type : Static
Source : Chapter 15 Test Bank - Algorithmic and Static > TB TF Qu. 15-8 (Static) When a lease agreement does not
include...
4
