Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true?
a. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale.
b. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease.
c. The lessor amortizes the leased asset, similar to recognizing depreciation on buildings and equipment.
d. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds.
e. The lessor records the signing of a capital lease the same as if the lessor sold the leased asset for an installment note receivable.
C
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The interest rate that can be earned on investments similar to the specific bond issue is the ____________________
Fill in the blank(s) with correct word
The sale of branded products through legal but unauthorized distribution channels is referred to as the
A. red market. B. gray market. C. black market. D. white market. E. blue market.
The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.
A. public prosecutor B. gazetted officer C. internal auditor D. district attorney
Kartman Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials 6.5pounds$7.00per pound$45.50Direct labor 0.6hours$24.00per hour$14.40Variable overhead 0.6hours$4.00per hour$2.40?In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.?The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is
computed when the materials are purchased.?The materials price variance for June is: A. $7,620 U B. $7,620 F C. $6,825 F D. $6,825 U