CPA Study Cards F5 3-16

An ---------------------- is an annuity with payments at the begginning of the period

An annuity due is an annuity with payments at the -------------------- of the period

An ----------------- is a financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time

An annunity is a financial product sold by financial institutions that is designed to -------------------- funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time

The ------------------------- is the only difference between an ordinary annuity and an annutiy due. 

In calculating the -------------------- of an ordinary annuity the number of payments is equal to the number of interest periods

In calculating the present value of an ordinary annuity the --------------------- is equal to the number of interest periods

In calculating the present value of an ordinary annuity the number of payments is equal to the -----------------------------

In calculating the ------------------------------- of an annuity due the number of interest periods is one less than the number of payments

In calculating the present value of an annuity due the number of interest periods is ----------------- than the number of payments

In calculating the present value of an ------------------- the number of interest periods is one less than the number of payments

The present value of $1 is the amount that must be invested ---------- at a specific interest rate so that $1 can be paid  or recieved in the future

The present value of $1 is the amount that must be invested now at a specific interest rate so that $1 can be paid  or recieved in the ---------------

The future value of $1 is the amount that would accumulae at a ---------------- in time if $1 were invested now.

The future value of $1 is the amount that would accumulae at a future point in time if $1 were --------------------.

The present value of an ordinary annuity is the ------------------ of a series of identical periodic payments to be made in the future

The present value of an ordinary annuity is the current worth of a series of identical periodic payments to be made in the --------

The future value of an ordinry annuity is the sum to be received at some --------------------- of identical periodic investments made from the present until that future point

The future value of an ----------------------- is the sum to be received at some point int he future of identical periodic investments made from the present until that future point

A lease is a contractual agreement between a ------------- who conveys the right to use real or personal property  and a ----------------- who agree to pay periodic rents over a specified time.

An operating lease includes a lessor who collects rent and a lessee who uses the leased asset and pays rent for such use.   The lessee merely uses the asset therer is --------------------------------- or of any risk or benefit of ownership.

The lessee records rent expense over the lease term usually on an -------------------- unless other methods are warrented

Leases bonus for future expenses should be classified as an asset and amortized using he --------------------------- over the life of the lease

Leases bonus for future expenses should be classified as an asset and ----------------- using he straightline method over the life of the lease

a leasehold improvement is one that is --------------------- to the property and reverts back to the lesser at the termination of the lease.

a leasehold improvement is one that is permanently affixed to the property and reverts back to the------------ at the termination of the lease.

The value of leasehold improvements should be ----------------- and added to PPE

leasehold improvements should be depreciated over the lesser of 1. ---------------- or 2. asset/improvement life

leasehold improvements should be depreciated over the lesser of 1. lease life or 2. --------------------------

a rent kicker is a premium rent payment for specific events  and is a --------------------

security deposits required by the lease may be either -------------------------------

a ---------------------------- security deposit is deferred by the leasor and capitalized by the lessee until the lessor considers it earned

a nonrefundable security deposit is -------------- by the leasor and capitalized by the lessee until the lessor considers it earned

a nonrefundable security deposit is deferred by the leasor and ---------------- by the lessee until the lessor considers it earned

a refundable security deposit is treated as a recievable by the lessee and a ---------------- by the lessor until the deposit is refunded to the lessee

a -------------------- security deposit is treated as a recievable by the lessee and a liability by the lessor until the deposit is refunded to the lessee

For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term

For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. 
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term

For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 
4. 75% or more of asset economic life is being committed in lease term

For Lessee capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4. 

For ------------ capital lease critera the lease must meet just one of the following to be capitalized

1. Owenership transfers at end of lease
2. Written option for bargain purchasse
3. 90% of leased  propery of lease payment
4. 75% or more of asset economic life is being committed in lease term

IFRS define a -------------------------- as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the lessee.

IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with --------------- are transafered to the lessee.

IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the ---------------.

Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a ----------------- or direct financing lease whichever is appropriate

1. Leassee owns the leased property 
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable

Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or -------------------- whichever is appropriate

1. Leassee owns the leased property
 2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable

Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1. 
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. Collectablity of the lease payments is reasonablity predictable

Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1. Leassee owns the leased property
 2. 
3. Collectablity of the lease payments is reasonablity predictable

Under US GAAP if a lease at inception meets all three of the following conditions it shall be classified by the lessor as a sales type or direct financing lease whichever is appropriate

1. Leassee owns the leased property 
2. Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor
3. 

In a --------------- lease the fair value of the leased property at the inception of the lease differs from the cost or carrying amount to the lessor. 

In a sales type lease the -------------- of the leased property at the inception of the lease differs from the cost or carrying amount to the lessor. 

In a sales type lease the fair value of the leased property at the inception of the lease -------------- from the cost or carrying amount to the lessor. 

In a --------------- lease the fair value of the leased property at the inception of the lease is the same as the cost or carrying amount

In a direct finacing lease the fair value of the leased property at the inception of the lease is the -------------- as the cost or carrying amount

Under IFRS a leassor classifies a lease as a --------------- if the lease transfers substantially all the risks  and rewards inherent in ownership to the lessee.  In other words the lessee and the lessor use the same critria for lease classification.

Under IFRS a leassor classifies a lease as a finance lease if the lease transfers substantially all the --------------------- inherent in ownership to the lessee.  In other words the lessee and the lessor use the same critria for lease classification.

Under IFRS a leassor classifies a lease as a finance lease if the lease transfers substantially all the risks  and rewards inherent in ownership to the lessee.  In other words the lessee and the lessor use the ----------- critria for lease classification.

The lessee treats the capital lease as if an asset were being ----------------------------

The lessee records the lease as an asset and a liability at the -------------- of 

1. Fair value of the asset at the inception of the lease
or
2. Cost = present value of the minimum lease payments

The lessee records the lease as an asset and a liability at the lower of

 1. 
or
2. Cost = present value of the minimum lease payments

The lessee records the lease as an asset and a liability at the lower of

 1. Fair value of the asset at the inception of the lease
or
2. 

When calculating the present value of the minimum lease payments the lessee uses the -------- of the 

1. Rate implicit in the lease
2. Lessees incremental borrowing rate(the rate available in the marktet to the lessee)

When calculating the present value of the minimum lease payments the lessee uses the lower of the 

1. -------------------------------
2. Lessees incremental borrowing rate(the rate available in the marktet to the lessee)

When calculating the present value of the minimum lease payments the lessee uses the lower of the 

1. Rate implicit in the lease
2.----------------------------------

Depreciation method

-------------------
<salvage value>
===============
Depresiable basis
/periods of benefit
===============
===============
deprecitaion expense

Depreciation method

capitalized lease assets
-------------------------
===============
Depresiable basis
/periods of benefit
===============
===============
deprecitaion expense

Depreciation method

capitalized lease assets
<salvage value>
===============
-------------------------
/periods of benefit
================
==============
deprecitaion expense

Depreciation method
capitalized lease assets
<salvage value>
===============
Depresiable basis
-----------------------------
===============
===============
deprecitaion expense

Depreciation method

capitalized lease assets
<salvage value>
===============
Depresiable basis
/periods of benefit
================
==============
--------------------------