Question 1

Which of the following best describes a capital (financial) lease under IAS 17?

Accepted Answer

The lessee assumes risks and rewards of ownership and must capitalize the asset on the balance sheet.

Question 2

According to IFRS 16, what is the main change in lease accounting for lessees after January 1st, 2019?

Accepted Answer

Lessees must recognize most leases on their balance sheets.

Question 3

A company signs a 5-year capital lease with annual payments of $$10,000. The present value of the lease payments is 43$$,295 at a 5% interest rate. What journal entry should be made at the signing of the lease?

Accepted Answer

Debit Lease Asset $$43,295; Credit Lease Liability 43$$,295

Question 4

Which formula correctly calculates the present value (PV) of a series of future lease payments?

Accepted Answer

$$PV = \frac{CF_1$}{(1+K)^1$} + \frac{CF_2$}{(1+K)^2$} + \frac{CF_3$}{(1+K)^3$} + \frac{CF_4$}{(1+K)^4$} + \frac{CF_5$}{(1+K)^5$}$$

Question 5

Which of the following is NOT a condition for a lease to be classified as a capital lease under IAS 17?

Accepted Answer

Lease payments are variable and based on asset usage.

Question 6

A company depreciates an asset at 10% per year in its financial reporting and 25% per year in its tax reporting. What is the effect on deferred tax?

Accepted Answer

A positive temporary difference, resulting in a deferred tax liability.

Question 7

Which equation correctly expresses the relationship between calculated tax, payable tax, and change in deferred tax?

Accepted Answer

$$Calculated\ Tax = Payable\ Tax + Change\ in\ Deferred\ Tax$$

Question 8

Which of the following is an example of a permanent difference in tax accounting?

Accepted Answer

Entertainment expenses not deductible for tax purposes.

Question 9

A company has total assets of $$100 million, liabilities of 60 $$million, and equity of $$40 million. If it acquires a lease with total payments of 25 $$million, how will this affect its debt ratio if the lease is classified as a capital lease?

Accepted Answer

Debt ratio will increase.

Question 10

Which of the following is true regarding deferred tax assets?

Accepted Answer

They arise when payable tax is greater than calculated tax.

Question 11

A company recognizes revenue in its financial statements before it is taxable. What is the effect on deferred tax?

Accepted Answer

Creates a deferred tax liability.

Question 12

Which of the following is NOT a way to finance operations according to the lecture?

Accepted Answer

By obtaining government grants

Question 13

What is the correct formula for the Debt Ratio?

Accepted Answer

$$Debt\ Ratio = \frac{Total\ liabilities}{Total\ assets}$$

Question 14

Which of the following best describes an operating lease under IAS 17?

Accepted Answer

The lessee records rent expense and no asset or liability.

Question 15

If a company has a deferred tax liability at the beginning of the year of €400,000 and the annual change in deferred tax is €75,000, what is the deferred tax at the end of the year?

Accepted Answer

€475,000

Question 16

Which of the following scenarios would most likely result in a deferred tax asset?

Accepted Answer

Expenses deductible for tax purposes later than recognized in financial reporting.

Question 17

A company enters into a lease for three physically distinct fibers in a cable. According to IFRS 16, how should this asset be identified?

Accepted Answer

As an identified asset, because it is physically distinct and specified in the contract.

Question 18

Which of the following is a temporal difference that causes deferred tax?

Accepted Answer

Depreciation charged at different rates in financial and tax reporting.

Question 19

If a company’s calculated tax is less than its payable tax, what does this indicate?

Accepted Answer

The company has a deferred tax asset.

Leasing and Deferred Tax: Financial Accounting Study Notes

스터디 가이드 - 연습 문제

학습 가이드 - 플래시카드