INTACC REVIEWER uses the general recognition or the

recognition exemption under PFRS 16

LEASE PART 1
9. Which of the following is not included in
1. Which of the following is not one of the
the lease payments for purposes of
criteria when determining whether a
computing for the lease liability
contract is or contains a lease?
C. Guaranteed residual value
B. identified liability
10. A right to use asset is initially measured
2. If the supplier has substitution right,
at cost and subsequently measured using
C. a customer shall not account for the
the contract as lease if it has the right to
D. any of these
direct use of the asset
3. According to PFRS 16 lease payments

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exclude which of the following LEASE PART 2

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C. payments for non-lease elements, 11. Which of the following will lead to
except when the lessee opts to use the finance lease classification by a lessor

o.
allowed practical expedient
rs e E. any of these
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4. The discount rate used by the lessee in
12. A lessor's net investment in a finance
accounting for leases
lease is computed as
o

D. choice a, if this is determinable, if

B. present value of (a)
aC s

not determinable, then choice b

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13. A lessor recognizes interest income on a

5. Initial direct cost incurred by a lessee are
finance lease in
D. b and c
C. equal amounts each period
ed d

6. When a lease transfers ownership to the

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14. If a lease provides for the transfer of

lessee by the end of the lease term
ownership over the leased asset or a
C. over the shorter of a and b purchase option that is reasonably certain
is

as to exercise
7. A six year lease expiring on December
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specifies equal annual lease payment B. the lessee shall depreciate the
leased asset over the shorter of the asset’s
D. More than in the fourth year
useful life and the remaining lease term
sh

8. Which of following is incorrect regarding

15. Net investment in the lease is equal to
the accounting for leases by a lessee?
the
A. a lessee recognizes the same total
amount of expense on a lease whether it

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 D. the present value of lease
payments plus the present value of any
unguaranteed residual value
16. Lease bonus under an operating lease
B. is initially treated as unearned
rent by a lessor
17. Initial direct costs incurred by the lessor
under an operating lease
A. are expensed outright
18. Rent income (lease income) under
operating leases are normally recognized
2. Which of the following creates a
temporary difference between financial and
taxable income?
B. Accelerated depreciation on plant
and equipment
3. Which of the following temporary
differences ordinarily creates a deferred tax
asset?
A. Accrued warranty costs
4. An example of a “deductible temporary
difference” occurs when

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using C. Warranty expenses are recognized

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on the accrual basis for financial reporting

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B. straight line method

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purposes but
19. Rent (lease) income under an operating

o.
5. An item that would create a permanent
lease may be computed as
rs e difference in pretax financial and taxable
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A. sum of lease payments over the incomes would be
lease term, excluding payments for non-
D. Paying fines for violation of laws
lease components of the contract, plus
o

lease bonus received divided by the lease 6. Which of the following is the most likely
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term item to result in a deferred tax asset?

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20. Which of the following is correct D. Unearned revenues

regarding the accounting for operating
7. Recognizing tax benefits in a loss year due
ed d

leases?
to a loss carryforward requires
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A. initial direct costs incurred by the

C. Creating a deferred tax asset
lessor are expensed immediately.
8. A deferred tax liability arising from the
is

INCOME TAXES
use of an accelerated method of
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1. Which of the following creates a depreciation for tax purposes and the
permanent difference between financial straight line method for
income and taxable income?
B. A noncurrent liability
sh

A. Interest received on government

9. The asset-liability method of interperiod
bonds
tax allocation currently required by PAS 12
D. Comprehensive recognition
approach

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 10. The purpose of an interperiod income 18. If the increase in deferred tax asset
tax allocation is to exceeds the increase in deferred tax liability
during the period
C. Recognize an asset or liability for
the tax consequences of temporary C. Deferred tax benefit
differences that exist at the balance sheet
19. If the current tax expense is greater than
data
the income tax expense during the period
11. If the carrying amount of an asset
A. Deferred tax benefit
exceeds its tax base
20. If the current tax expense is less than
A. Taxable temporary difference
the income tax expense during the period
12. This causes the profit determined under
B. Deferred tax expense
PFRS to be greater than the taxable profit
determined under tax laws

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B. Taxable temporary difference

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13. This causes the profit determined under

o.
PFRS to be less than the taxable profit
determined under tax laws
rs e
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A. Deductible temporary difference
14. Taxable temporary difference multiplied
o

by the tax rate equals

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D. Deferred tax liability

15. Deductible temporary difference
multiplied by the tax rate equals
ed d
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C. Deferred tax asset

16. It is the sum of the net changes in
deferred tax liabilities and deferred tax
is

assets during the period

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D. Deferred tax expense (benefit)

17. If the increase in deferred tax liability
sh

exceeds the increase in deferred tax asset

during the period
D. Deferred tax expense

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