Conceptua MC

Answer No. 7. Gain/oss attention in a sae-easeback d *8. Sae-easeback transactions d *.
Reporting gain on a sae-easeback a *50. Cassification of ease of and c *5. Cassification of ease of
and

A potentia advantage of easing?

00% financing at fixed rates

2 a ease recognized as an operating ease under FRS

(a) if it is dee med so by the es s or (b) if it doesn’t meet the criteria of an op-ing eased c() if the
company eects to record as an operating ease
(d) if it is ess than one yea r

 A reacquisition &canceation of shares by a corp may

( a) directy increase & notdecrease RE retained earnings. (
b) increase N if recognizing gain
(c) directy decrease RE retained earnings. d) decrease but not increase N net income. Answer: c

ANSWER
 FALS E
2 D
 C