F6/M1 Operating Leases Flashcards
1
Q
Capitalize Leasehold improvements for operating leases and depreciate = Lesser of
A
Lease life or asset improvement life
2
Q
Lessee: A Lease Bonus and Nonrefundable Security Deposit are Prepaid expenses
A
True
3
Q
Rent Kicker is a period expense
A
True
4
Q
Refundable Security deposit is an asset, a receivable to the lessee
A
True
5
Q
Lessor: A Lease Bonus and Nonrefundable Security Deposit are Unearned Income
A
Amortize to income the Lease Bonus over life of lease
6
Q
Disclosure for lessee with Operating Lease in excess of one year
A
Minimum future rental payments in total
7
Q
Disclosure for all operating leases
A
Schedule of total rental expense
Rent kickers
