Financial Accounting MCQ on Lease Accounting
MCQ on Lease Accounting
Also Read Financial Accounting MCQ
- MCQ on GAAP
- MCQ on Basic Fundamentals
- MCQ on Financial Statements
- MCQ on Accounting Standards
- MCQ on Partnership Accounts
- MCQ on Hire Purchase System
- MCQ on Lease Accounting
1. The person who undertake an agreement, conveys to another person the right to use in return for rent, an assest for an agreed period of time
(a) Lessor
(b) Lessee
(c) Both
(d) None of the above
Answer (a) Lessor
2. The person who under an agreement , obtains from another person the right to use, in return for rent, an assest for an agreed period of time.
(a) Lessor
(b) Lessee
(c) Both
(d) None of the above
Answer (b) Lessee
3. Accounting standard for lease is
(a) As 17
(b) As 18
(c) As 19
(d) As 20
Answer (c) As 19
4. There are twon parties involved in a lease agreement namely
(a) Lessor and lessee
(b) Indemnifier and surety
(c) Buyer and seller
(d) Bailor and bailee
Answer (a) Lessor and lessee
5. The amout for which an assest could be exchanged or a liability settled between knowledgeable, willing parties in an arm length transaction in termed as
(a) Invoice value
(b) Market value
(c) Fire value
(d) Dual value
Answer (c) Fire value
6. The estimated fire value of the assets at the end of the lease term is known as
(a) Residual value
(b) Invoice value
(c) Dual value
(d) Market value
Answer (a) Residual value
7. As 19 classifies lease in to how many types?
(a) 2
(b) 1
(c) 3
(d) 4
Answer (a) 2
8. Operating lease is a
(a) Revocable contract
(b) Non revocable contract
(c) Operating contract
(d) None of the above
Answer (a) Revocable contract
9. Which lease transfer substantially all the risk and rewards incident to ownership of an asset?
(a) Operating lease
(b) Finance lease
(c) Both
(d) None of the above
Answer (b) Finance lease
10. The different between the lessor’s gross investment in the lease and its present value is called as
(a) Finance income
(b) Nonfinancial income
(c) Unearned finance income
(d) None of the above
Answer (c) Unearned finance income
11. The expected fire value of the leasehold property at the end of the term included in the minimum lease payment is termed as
(a) Unguaranteed residual value
(b) Guaranteed residual value
(c) Both
(d) None of the above
Answer (a) Unguaranteed residual value
12. A portion of the lease payment that is not fixed in amount but is based on a factor other than just the passage of time is termed as
(a) House rent
(b) Outstanding rent
(c) Contingent rent
(d) None of the above
Answer (c) Contingent rent
13. Financial lease is
(a) Non revocable contract
(b) Revocable contract
(c) Contingent contract
(d) None of the above
Answer (a) Non revocable contract
14. In which types of lease expenses like maintenance, repair, and taxes are born by the lessor
(a) Operating lease
(b) Financial lease
(c) Both
(d) None of the above
Answer (a) Operating lease
15. In financial lease the risk of obsolescence is taken by the
(a) Lessor
(b) Lessee
(c) Both
(d) None of the above
Answer (b) Lessee
