Which of the following does not apply to SFAS No. 13?
a. It changed capitalization criteria.
b. Non-cancellability and material equity were abandoned in favor of broader tests representing substantive transfers of ownership benefits and risks.
c. It is intended to capitalize fewer leases than previous standards.
d. It provides that the lessee use the lessor’s implicit rate in the lease if it is obtainable and if the implicit rate is lower than the lessee’s incremental borrowing rate.
ANSWER: C
You might also like to view...
The purpose of profitability control is to ________
A) examine whether the planned results are being achieved B) examine where the company is making and losing money C) evaluate and improve the spending efficiency and impact of marketing expenditures D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels E) understand the efficiency of the sales force, advertising, sales promotion, and distribution
Some firms question the costs/benefits of implementing Sarbanes-Oxley
Indicate whether the statement is true or false
A candy company merging with a greeting cards company is a ________ merger.
A. conglomerate B. vertical C. market-extension D. product-extension
How does the federal government incentivize corporations to have an ethics and compliance officer or chief compliance officer?
a. Corporations with this receive significant tax breaks. b. The Federal Sentencing Guidelines provide incentives. c. Incentives are provided through advertising of “ethical” companies by the Commerce Department. d. The federal government exempts such corporations from fraud investigations.