U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true?
a. U.S. GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease.
b. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.
c. Firms cannot currently apply the fair value option to capital leases.
d. The FASB and the IASB have undertaken a joint project involving the lessee's accounting for leases which may result in treating all leases as capital leases.
e. all of the above
A
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The most recent balance sheet and income statement of Oldaker Corporation appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$31 $29 Accounts receivable 73 79 Inventory 44 45 Property, plant and equipment 728 590 Less accumulated depreciation 253 242 Total assets$ 623 $ 501 Liabilities and stockholders' equity: Accounts payable$56 $63 Accrued liabilities 21 22 Income taxes payable 26 28 Bonds payable 121 110 Common stock 33 30 Retained earnings 366 248 Total liabilities and stockholders' equity$ 623 $ 501 Income StatementSales$ 921Cost of goods sold 575Gross margin346Selling and administrative expense 117Net operating income229Income taxes 69Net
income$ 160The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) investing activities for the year was: A. $(138) B. $138 C. $127 D. $(127)
When there is an uncertainty surrounding the financial statements, the auditor may still be able to give an unqualified opinion
a. True b. False Indicate whether the statement is true or false
Which behavior is likely to be exhibited by Claire, who has low degree of self- monitoring?
A. attempting to disguise her feelings when appropriate B. showing regard for how others see her C. refusing to change any aspect of herself to accommodate a situation D. matching behavior to the requirements of the situation
Bonds are sold at face value when the contract rate is equal to the market rate of interest
Indicate whether the statement is true or false