U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true?
a. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset.
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 an operating lease.
d. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk.
e. Firms cannot currently apply the fair value option to capital leases
C
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A capital lease is in economic substance a purchase by the lessee and a sale or financing arrangement by the lessor
Indicate whether the statement is true or false
Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.
What will be an ideal response?
Nadal Company On October 1, 2012, Nadal Company received a $50,000 promissory note from Borg Company. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013. Refer to the information provided for Nadal Company. An adjusting entry for Nadal's year end, December 31, 2012 needed to:
A) increase interest revenue by $2,250 B) increase notes receivable by $750 C) increase interest receivable by $750 D) increase notes receivable by $2,250
The RAISE_APPLICATION_ERROR function accepts the ____ arguments.
A. Error ID B. Error name C. Error length D. Error message