# CPA Study Cards F5 3-16

 An ---------------------- is an annuity with payments at the begginning of the period annuity due An annuity due is an annuity with payments at the -------------------- of the period begginning  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 annunity 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 accept and grow The ------------------------- is the only difference between an ordinary annuity and an annutiy due.  timing of payments In calculating the -------------------- of an ordinary annuity the number of payments is equal to the number of interest periods persent value In calculating the present value of an ordinary annuity the --------------------- is equal to the number of interest periods number of payments In calculating the present value of an ordinary annuity the number of payments is equal to the ----------------------------- number of interest periods In calculating the ------------------------------- of an annuity due the number of interest periods is one less than the number of payments present value In calculating the present value of an annuity due the number of interest periods is ----------------- than the number of payments one less In calculating the present value of an ------------------- the number of interest periods is one less than the number of payments annunity due 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 now 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 --------------- future The future value of \$1 is the amount that would accumulae at a ---------------- in time if \$1 were invested now. future point The future value of \$1 is the amount that would accumulae at a future point in time if \$1 were --------------------. invested now The present value of an ordinary annuity is the ------------------ of a series of identical periodic payments to be made in the future current worth The present value of an ordinary annuity is the current worth of a series of identical periodic payments to be made in the -------- future 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 point in the future 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 ordinary annuity 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. lessor / lessee 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. no transfer of ownership The lessee records rent expense over the lease term usually on an -------------------- unless other methods are warrented straghtline basis Leases bonus for future expenses should be classified as an asset and amortized using he --------------------------- over the life of the lease straightline method Leases bonus for future expenses should be classified as an asset and ----------------- using he straightline method over the life of the lease amortized a leasehold improvement is one that is --------------------- to the property and reverts back to the lesser at the termination of the lease. permanently affixed  a leasehold improvement is one that is permanently affixed to the property and reverts back to the------------ at the termination of the lease. lesser The value of leasehold improvements should be ----------------- and added to PPE capitalized leasehold improvements should be depreciated over the lesser of 1. ---------------- or 2. asset/improvement life lease life leasehold improvements should be depreciated over the lesser of 1. lease life or 2. -------------------------- asset/improvement life a rent kicker is a premium rent payment for specific events  and is a -------------------- period ecpense security deposits required by the lease may be either ------------------------------- refundable or nonrefundable a ---------------------------- security deposit is deferred by the leasor and capitalized by the lessee until the lessor considers it earned nonrefundable a nonrefundable security deposit is -------------- by the leasor and capitalized by the lessee until the lessor considers it earned deferred a nonrefundable security deposit is deferred by the leasor and ---------------- by the lessee until the lessor considers it earned capitalized 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 liability 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 refundable 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 owenreship transfers at end of lease 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 Written option for bargan purchase 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 90 % of leased property of lease payment 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 ------------ 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 lessee IFRS define a -------------------------- as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the lessee. finance lease IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with --------------- are transafered to the lessee. ownership IFRS define a finance lease as a lease in which substantially all he risk and rewards inherent with ownership are transafered to the ---------------. lessee 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 sales type 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 direct financing lease 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 Leassee owns the leased property  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 Uncertainties do not exist regarding any unreimbursable costs to be incurred by the lessor 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.  Collectablity of the lease payments is reasonablity predictable 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.  sales type lease 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.  fair value 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.  differs 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 direct financing  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 same 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. finance lease 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. risks and rewards 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. same The lessee treats the capital lease as if an asset were being ---------------------------- purchased over time 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 lower 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 Fair value of the asset at the inception of the lease 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.  Cost = present value of the minimum lease payments 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) lower 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) Rate implicit in the lease When calculating the present value of the minimum lease payments the lessee uses the lower of the  1. Rate implicit in the lease 2.---------------------------------- Lessees incremental borrowing rate(the rate available in the marktet to the lessee) Depreciation method ------------------- =============== Depresiable basis /periods of benefit =============== =============== deprecitaion expense capitalized lease assets Depreciation method capitalized lease assets ------------------------- =============== Depresiable basis /periods of benefit =============== =============== deprecitaion expense Depreciation method capitalized lease assets =============== ------------------------- /periods of benefit ================ ============== deprecitaion expense Depresiable basis Depreciation method capitalized lease assets =============== Depresiable basis ----------------------------- =============== =============== deprecitaion expense /periods of benefit Depreciation method capitalized lease assets =============== Depresiable basis /periods of benefit ================ ============== -------------------------- deprecitaion expense AuthorJoens1313 ID164907 Card SetCPA Study Cards F5 3-16 DescriptionCPA Study Cards F5 3-16 Updated2012-08-07T22:39:46Z Show Answers