e following statements relate to the impact on the financial statements for operating vs. finance leases. Indicate all statements that are correct lect one or more: a. The right of use asset is shown at a higher amount for a finance lease. b. The lease liability is measured as the present value of future cash flows for both operating and finance leases. c. Net Income is higher at first when a lease is classified as a finance lease. 0 d. Operating Income is lower when a lease is classified as an operating lease.

In accounting for a finance lease/ Sale-type lease, how are the lessee's and lessor's income statements affected?

On the balance sheet, the lease liability is measured as ________. Group of answer choices the present value of the lease payments less the present value of the guaranteed residual value (if any) the present value of the lease payments plus the future value of the guaranteed residual value (if any) the present value of the lease payments plus the present value of the guaranteed residual value if the lessee guarantees it(if any) the future value of the lease payments plus the future value of the guaranteed residual value (if any)

In calculating the amortization of a leased asset, the lessee should subtract a   Select one: a. guaranteed residual value and amortize over the term of the lease. b. unguaranteed residual value and amortize over the term of the lease. c. guaranteed residual value and amortize over the life of the asset. d. unguaranteed residual value and amortize over the life of the asset. e. None of the above.

The following details taken from the books of DiDi Sdn Bhd for the year ending 31 December 2020.   DiDi Sdn Bhd Statement Profit or Loss for the year ending 31 December 2020 (extract)   RM RM Gross profit   44,700 Add : Discount received 410   Profit on sale of van 620       1,030     45,730 Less: Expenses     Motor expenses 1,940   Wages 17,200   General expenses 830   Bad debts 520   Increase in allowance for doubtful debts 200   Depreciation : van 1,800       22,490     23,240   Statement of Financial Position as at 31 December   2019   2020     RM RM RM RM Non-current Assets         Vans at cost   15,400   8,200 less Depreciation   (5,300)   (3,100)     10,100   5,100 Current Assets         Inventory 18,600   24,000   Trade accounts receivables less provision*…

What is the difference between a "capital/financing lease" and an "operating lease"? Where on the various financial statements would we expect to find each of these leases reported?

2 Which statement is correct in comparing capital leases to operating leases? a) A capital lease will have a higher asset turnover compared to an operating lease. b) A capital lease will increase the return on total assets compared to an operating lease. c) A capital lease will have a lower debt-to-equity ratio compared to an operating lease. d) A capital lease will have a higher debt-to-equity ratio compared to an operating lease.

Provide correct answer for this question

Under the FASB old lease standard, when management of a company wishes to window-dress, they classify lease as a capital lease rather than operating lease to generally report:   1. Higher cash flow from operations and higher assets.   2. lower cash flow from operations and lower assets.   3. Identical cash flow from operations and the same amount of          assets.   4.    None of the above.

What should be the discount rate for capitalizing the operating leases?A. If possible, the implied internal rate of return (IRR) that equates the sum of thediscounted capital lease payments with the reported PV of the payments.B. The effective interest rate (EIR) that represents the average interest rate thatthe company pays on its debt.C. The effective tax rate (ETR) that represents the average tax rate that thecompany pays on its earnings.D. None of the above.