CPA Financial (FAR) Practice Exam # 4 -
Questions
The present value of Equal to
lease payments must
____________________90%
of the fair value of the
asset. Note - Finance
Lease (1 of 2)
Equal to
Less
than
The present value of lease Higher than
payments must be ________ 90%
of the fair value of the
asset. Higher or lower?
Note - Finance Lease (2 of
2)
Higher
than Less
than
, Lease payments are Expense
recognized as an
_____________________
on
the income statement.
Note - For operating
leases.
Expense
Accounts Receivable
Intangible assets with True
indefinite lives are not
amortized. True or False? (1
of 2)
Intangible assets with True
indefinite lives are tested
for impairment. True or
False? (2 of 2)
Legal fees for securing a True
patent are capitalized
as intangible assets. True
or
False?
Development costs are False
capitalized as intangible
assets. True or False?
A company issues Retained earnings
stock dividends,
therefore the journal
entry to debit is
_ (1 of 2)
Retained
earnings Note
Questions
The present value of Equal to
lease payments must
____________________90%
of the fair value of the
asset. Note - Finance
Lease (1 of 2)
Equal to
Less
than
The present value of lease Higher than
payments must be ________ 90%
of the fair value of the
asset. Higher or lower?
Note - Finance Lease (2 of
2)
Higher
than Less
than
, Lease payments are Expense
recognized as an
_____________________
on
the income statement.
Note - For operating
leases.
Expense
Accounts Receivable
Intangible assets with True
indefinite lives are not
amortized. True or False? (1
of 2)
Intangible assets with True
indefinite lives are tested
for impairment. True or
False? (2 of 2)
Legal fees for securing a True
patent are capitalized
as intangible assets. True
or
False?
Development costs are False
capitalized as intangible
assets. True or False?
A company issues Retained earnings
stock dividends,
therefore the journal
entry to debit is
_ (1 of 2)
Retained
earnings Note
