U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is true?
a. Firms cannot currently apply the fair value option to capital leases.
b. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease.
c. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease.
d. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk.
e. all of the above
E
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Hawk Store counted some of its inventory twice. As a result, its operating expenses will be
a. Correct only if Hawk Store calculates it cost of goods sold correctly b. Correct since operating expenses are not affected by inventory costs c. Overstated d. Understated
The cash value on a life insurance policy is
A) equal to the savings generated during the existence of the policy contract. B) equal to the surrender value. C) equal to the market value of the insurance policy. D) equal to the amount borrowed against the face amount on the insurance policy.
Which of the following is NOT a critical success factor associated with the decision to locate on a particular site?
a. size of site b. proximity to raw materials c. construction and land costs d. zoning and environmental restrictions
The traditional client/server architecture involves two levels, or tiers: a client tier and a _________ tier
Fill in the blanks with correct word