The Lease Liability account should be disclosed as
a. all current liabilities.
b. all noncurrent liabilities.
c. current portions in current liabilities and the remainder in noncurrent liabilities.
d. deferred credits.
Answer: current portions in current liabilities and the remainder in noncurrent liabilities
Learn More :
Accounting Chapter 21
- To avoid leased asset capitalization, companies can devise lease agreements that fail to satisfy any of the four leasing criteria. Which of the following is not one of the ways to accomplish this goal?
- Which of the following statements is correct?
- For a sales-type lease,
- A lessor with a sales-type lease involving an unguaranteed residual value available to the lessor at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts?
- The primary difference between a direct-financing lease and a sales-type lease is the
- The initial direct costs of leasing
- When lessors account for residual values related to leased assets, they
- If the residual value of a leased asset is guaranteed by a third party
- In order to properly record a direct-financing lease, the lessor needs to know how to calculate the lease receivable. The lease receivable in a direct-financing lease is best defined as
- In a lease that is appropriately recorded as a direct-financing lease by the lessor, the unearned income
- Which of the following would not be included in the Lease Receivable account?
- Based solely upon the following sets of circumstances indicated below, which set gives rise to a sales-type or direct-financing lease of a lessor?
- A lessee with a capital lease containing a bargain purchase option should depreciate the leased asset over the
- From the lessee's perspective, in the earlier years of a lease, the use of the
- Lessees prefer to account for their leases as operating lease because:
- In computing the present value of the minimum lease payments, the lessee should
- In computing depreciation of a leased asset, the lessee should subtract
- Minimum lease payments may include a
- Which of the following is a correct statement of one of the capitalization criteria?
- The methods of accounting for a lease by the lessee are
- The amount to be recorded as the cost of an asset under capital lease is equal to the
- What impact does a bargain purchase option have on the present value of the minimum lease payments computed by the lessee?
- An essential element of a lease is that the
- While only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.