FAR 4 Flashcards
1
Q
Requirements for capital lease: (only one criterion needed)
A
Ownership transfers
Bargain purchase option
Lease payments (pv)>= 90 percent of FMV
75 percent economic life
2
Q
Receivable turn over
A
Net credit sale divided by average receivables
3
Q
Inventory turnover=
A
Cost of good sold/average inventory (beginning inv+ending inv)/2)
